Offshore Wind Giant Orsted's Proposed Hybrid Rated 'BB+'; Equity Content Unaffected By Proposed Liability Management

Orsted A/S announced today its launch of two tranches of green hybrid instruments in euro and pound sterling, with proceeds assigned to green purposes and to partially refinance its €700 million hybrid, with first call date in 2023. The company has also launched a tender offer on the hybrid instrument of up to €250 million. The transactions will be sized subject to market conditions, with a target to increase Orsted's aggregate hybrid capital outstanding by a net minimum of €600 million. We understand Orsted intends to keep the remaining share of the NC2023 securities as a permanent part of its capital structure. We are assigning our 'BB+' issue rating to the proposed security, which we assess as having intermediate equity

...February 9, 2021 - Orsted A/S announced today its launch of two tranches of green hybrid instruments in euro and pound sterling, with proceeds assigned to green purposes and to partially refinance its 700 million hybrid, with first call date in 2023. - The company has also launched a tender offer on the hybrid instrument of up to 250 million. - The transactions will be sized subject to market conditions, with a target to increase Orsted's aggregate hybrid capital outstanding by a net minimum of 600 million. We understand Orsted intends to keep the remaining share of the NC2023 securities as a permanent part of its capital structure. - We are assigning our '##+' issue rating to the proposed security, which we assess as having intermediate equity content, to reflect its subordination and optional deferability. PARIS (S&P Global Ratings) Feb. 9, 2021--S&P Global Ratings said today that it has assigned its '##+' long-term issue rating to the proposed 3021, optionally deferrable, and subordinated...

Ratings Action