Ørsted, formerly DONG Energy, has announced its intention to issue the company’s first green bonds, a EUR 500 million green hybrid capital security and a minimum EUR 500 million green senior bond in the euromarket.
Issuing green bonds is another step in Ørsted’s green transition, the company says. The Green Bonds Framework, developed in alignment with the company’s Green Bond Principles 2017, has been reviewed by the nonprofit Center for International Climate and Environmental Research (CICERO). CICERO allocated the framework a Dark Green Shading, which is the highest grading a green bond issuer can receive, says Ørsted.
Ørsted explains that green bonds are like any other bond but with one key difference: The proceeds raised by the issuer are earmarked toward environmentally friendly assets or business activities. For Ørsted, they are likely to encompass new and existing offshore wind energy projects and the conversion of coal-fired heat and power plants to sustainable biomass. Energy efficiency projects and energy storage are also eligible for green bond proceeds.
“At Ørsted, we want to create a world that runs entirely on green energy. We need to transform the way we power the world – from black to green energy,” says Henrik Brünniche Lund, head of investor relations.