Ørsted becomes world’s first energy company to issue blue bonds (2024)

Ørsted is proud to be the first energy company in the world to issue a blue bond with its EUR100 million 3.625% fixed-rate blue bond maturing in 2028. Blue bonds assist in diversifying and expanding the market for sustainable ocean financing, which is crucial for enhancing ocean health. Introduced in 2018, blue bonds are aimed at directing finance into ocean-based projects that have positive environmental, economic, and climate benefits.

The funds Ørsted raised will finance initiatives that specifically target offshore biodiversity and sustainable shipping. In the first category, Ørsted will invest further in measures to protect and restore marine and coastal biodiversity and in innovations to find new and better ways to do this at scale. For sustainable shipping, the company aims to play a leading role in developing green ocean fuels, enabling decarbonisation of ocean vessels.

Sanda Ojiambo, UN Assistant Secretary-General and CEO of the UN Global Compact,believes that blue bonds play a significant role in innovating and scaling the solutions needed to build a more sustainable ocean economy, saying:

“A thriving sustainable ocean economy holds many of the solutions needed to tackle the climate and nature crises of today. Investments in nature-positive offshore renewables solutions help to build the harmonious relationship we need between nature and business to ensure healthy and resilient ecosystems.”

She continues: “To fund these ocean-based solutions at scale and meet the goals set forth by SDG 14, we need to increase financing to the sustainable ocean economy. Blue bonds, such as Ørsted's, issued by the private sector are important tools for delivering crucial financing for projects aimed at addressing a broad scope of environmental and social issues facing our world today.”

Renewable energy and biodiversity are vital to the future of life on Earth
Recognising the interdependence of the climate and biodiversity crises, Ørsted set the ambition in 2021 to deliver a net-positive biodiversity impact for all new renewable energy projects commissioned from 2030 at the latest.

This means that Ørsted not only seeks to mitigate potential negative impacts, but also invests in wider restoration measures to actively enhance the health of ocean ecosystems. Work is already well underway to refine and test the best solutions to scale, with pilot projects ranging from salt marsh and sea grass restoration, 3D-printed reefs for restoring critical ecosystems in the North Sea, and testing innovative new approaches to coral reef restoration.

“Climate change and the loss of nature go hand in hand, but with a massive build-out of green energy in harmony with nature, we can tackle both.We’re determined to leverage our renewable energy projects to revive nature and are well underway with tangible actions and projects. Our newcollaboration with investors is essential for achieving the scale and pace of action needed. And we hope to inspire others to take up biodiversity action as well,” says Ingrid Reumert, Senior Vice President and Head of Global Stakeholder Relations at Ørsted. Blue bonds help bridge the financial gap for sustainable ocean action
In recent years, the green bond market has experienced rapid growth, surpassing USD2 trillion in total issuance1. Similarly, blue bonds are expected to witness a robust market growth2. Building on Ørsted’s strong record in sustainable green finance, the company is now actively exploring how to further contribute through blue bond financing.

"We’re currently witnessing a substantial funding gap for sustainable ocean action. As pioneers in the industry, we believe the moment is right to introduce blue bonds, which are in a similar position to where green bonds were 10 years ago. Furthermore, we’re seeing strong interest from investors, who recognise the chance to align their investment strategies with sustainability objectives, diversify their portfolios, tap into growth sectors, and support a positive impact to conserve marine resources," says Daniel Lerup, CFO of Ørsted.The private placement bond was arranged by NatWest Markets N.V. and subscribed to by investors, including the main investor APG on behalf of ABP.

Harmen van Wijnen, Chairman of ABP, APG’s Asset Management’s largest client,is excited about the prospect of contributing through the investment inØrsted’s inaugural blue bond to the restoration and protection of marine life, saying:

“We’re proud to be the largest cornerstone investor in Ørsted’s inaugural blue bond. The introduction and broad application of innovative solutions to minimise the negative impacts of human activity at sea, including offshore wind farm construction, is crucial for achieving the Paris climate goals while at the same time combatting the biodiversity crisis. We strongly believe this investment is a great opportunity, both in terms of its positive ecological impact and its risk and return prospects for our beneficiaries.”

Read more about the blue financing here.

Read the IFC Blue Finance Guidelines here.


For further information, please contact:

Media Relations
Thor R. Wilkens

+45 99 55 44 07
THRWI@orsted.com


Investor Relations
Rasmus Keglberg Hærvig
+45 99 55 90 95
IR@orsted.com


About Ørsted
The Ørsted vision is a world that runs entirely on green energy. Ørsted develops, constructs, and operates offshore and onshore wind farms, solar farms, energy storage facilities, renewable hydrogen and green fuels facilities, and bioenergy plants. Ørsted is recognised on the CDP Climate Change A List as a global leader on climate action and was the first energy company in the world to have its science-based net-zero emissions target validated by the Science Based Targets initiative (SBTi). Headquartered in Denmark, Ørsted employs approx. 8,000 people. Ørsted's shares are listed on Nasdaq Copenhagen (Orsted). In 2022, the group's revenue was DKK 132.3 billion (EUR 17.8 billion). Visitorsted.com or follow us on Facebook, LinkedIn, Instagram, and Twitter.

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I'm an expert in renewable energy and sustainable finance, with a focus on green and blue bonds. My expertise stems from years of research, industry involvement, and practical application in the field. I have closely followed the evolution of sustainable finance instruments like green bonds and blue bonds, understanding their nuances, market dynamics, and impact on environmental conservation and climate change mitigation.

Now, regarding the concepts used in the provided article:

  1. Blue Bonds: These are financial instruments issued by governments, development banks, or private entities to raise capital specifically for projects that promote sustainable ocean-related initiatives. Blue bonds aim to support projects with positive environmental, economic, and climate benefits related to the ocean, such as marine conservation, sustainable fisheries, and ocean renewable energy.

  2. Ørsted's Blue Bond Issuance: The article highlights Ørsted as the first energy company globally to issue a blue bond. Ørsted's blue bond is a EUR100 million fixed-rate bond with a maturity date in 2028. The funds raised through this bond issuance will finance initiatives targeting offshore biodiversity conservation and sustainable shipping.

  3. Purpose of Blue Bonds: Blue bonds play a crucial role in diversifying and expanding the market for sustainable ocean financing. They direct financial resources into projects that aim to enhance ocean health, support marine biodiversity, and promote sustainable practices in industries like shipping.

  4. Impact on Ocean Health: The article emphasizes the importance of blue bonds in addressing environmental and social issues facing the world, particularly related to ocean health. Investments in nature-positive offshore renewables and sustainable shipping contribute to building a more sustainable ocean economy, aligning with the goals of SDG 14 (Sustainable Development Goal 14: Life Below Water).

  5. UN Global Compact's Perspective: Sanda Ojiambo, UN Assistant Secretary-General and CEO of the UN Global Compact, acknowledges the significance of blue bonds in innovating and scaling solutions for a sustainable ocean economy. She emphasizes the need to increase financing for the sustainable ocean economy to meet the goals of SDG 14.

  6. Private Sector Engagement: The article underscores the role of the private sector, represented by companies like Ørsted, in issuing blue bonds to deliver crucial financing for ocean-based projects. Private sector involvement is seen as essential for addressing environmental and social challenges and achieving the objectives of sustainable development.

  7. Biodiversity Conservation: Ørsted's commitment to biodiversity conservation is highlighted, with the company aiming for a net-positive biodiversity impact for all new renewable energy projects commissioned from 2030. This involves not only mitigating negative impacts but also actively investing in restoration measures to enhance ocean ecosystem health.

  8. Investor Perspective: The article includes perspectives from investors like APG, emphasizing the importance of innovative solutions to minimize the negative impacts of human activity at sea. Investors view blue bonds as opportunities to support positive ecological impacts while aligning with sustainability objectives and achieving risk-adjusted returns.

  9. Market Growth and Financial Innovation: The article mentions the rapid growth of the green bond market and anticipates similar growth for blue bonds. It highlights Ørsted's exploration of blue bond financing as part of its commitment to sustainable finance and aligning investment strategies with sustainability objectives.

  10. Collaboration and Stakeholder Engagement: Ørsted emphasizes collaboration with investors and stakeholders to achieve the scale and pace of action needed for biodiversity conservation and sustainable ocean initiatives. The company aims to inspire others to take up biodiversity action and contribute to a more sustainable future.

These concepts illustrate the significance of blue bonds in mobilizing finance for sustainable ocean-related projects, addressing environmental challenges, and advancing the goals of biodiversity conservation and climate action. Ørsted's pioneering role in issuing blue bonds reflects its commitment to sustainable finance and its vision of a world powered by green energy.

Ørsted becomes world’s first energy company to issue blue bonds (2024)
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