Ørsted Proceeds with Rights Issue, Selects Banking Consortium

Ørsted is moving forward with a 60 billion Danish kroner rights issue, selecting a banking consortium led by BNP Paribas, Danske Bank, and JP Morgan to manage the issuance. The company has guaranteed the rights issue for 49.9% of shares not covered by the Danish state's commitment. The planned rights issue is not expected to affect Ørsted's 2025 guidance or medium-term financial targets.

Danish renewable energy company Ørsted A/S has announced that it will move forward with its planned DKK 60 billion (approximately USD 9.6 billion) rights issue, despite receiving a stop-work order for its Revolution Wind project in the United States. The company has appointed a banking consortium to manage the issuance, which includes BNP Paribas, Danske Bank, and JP Morgan as joint global coordinators, with Morgan Stanley, Bank of America, and Goldman Sachs acting as joint bookrunners [1].

The rights issue, first announced on August 11, is designed to strengthen Ørsted’s capital structure amid increased regulatory uncertainty for offshore wind in the US. The company has guaranteed the rights issue for approximately 49.9% of shares not covered by the Danish state's commitment [1].

The stop-work order for Revolution Wind, a 50/50 joint venture with Skyborn Renewables, was issued by the US Bureau of Ocean Energy Management on August 22. The project, which is 80% complete with all foundations and 45 of 65 wind turbines already installed, is expected to generate an additional DKK 11-12 billion in annual EBITDA when completed by the end of 2027 [2].

Ørsted aims to complete the project by the second half of 2026, with approximately DKK 5 billion ($800 million) in remaining investment required for its 50% share. The company is evaluating options to resolve the matter through dialogue with permitting agencies and potentially through legal proceedings [2].

The planned rights issue is not expected to affect Ørsted's 2025 guidance or its medium-term financial targets. Ørsted will hold an extraordinary general meeting on September 5 regarding the rights issue and will provide further details about the launch in due course [2].

References:
[1] https://www.marketscreener.com/news/orsted-proceeds-with-rights-issue-selects-banking-consortium-ce7c50dbd188f726
[2] https://www.investing.com/news/company-news/rsted-to-proceed-with-60-billion-rights-issue-despite-us-project-halt-93CH-4208109