Ørsted Moving Ahead with EUR 8 Billion Rights Issue to Build Sunrise Wind, Shore Up Finances Amid US Market Uncertainty

Ørsted has appointed a syndicate of BNP PARIBAS, Danske Bank A/S and J.P. Morgan SE as Joint Global Coordinators, next to Morgan Stanley & Co International, for the planned DKK 60 billion (around EUR 8 billion; USD 9.4 billion) rights issue, proceedings of which will be used to fund the construction of the Sunrise Wind offshore wind farm in the US and strengthening Ørsted’s capital structure.

The syndicate of banks are jointly underwriting the rights issue for the approximately 49.9 per cent that will not be subscribed to by Ørsted’s majority shareholder, the Danish state (50.1 per cent).

BofA Securities Europe SA and Goldman Sachs International will act as Joint Bookrunners for the rights issue.

According to Ørsted, whose 704 MW Revolution Wind project received a federal stop-work order on 22 August, the planned rights issue is designed to fund building the 924 MW Sunrise Wind to completion and provide a financial buffer for the company to execute its business plan, including projects in the uncertain US offshore wind market.

“The stop-work order for Revolution Wind emphasises the increased regulatory uncertainty for offshore wind in the US. The planned rights issue has been sized to provide the required strengthening of Ørsted’s capital structure to execute its business plan, even when taking into account the impact of this uncertainty on Ørsted’s US offshore wind portfolio”, the company said on 25 August.

The investment required to complete the almost-finished Revolution Wind offshore wind farm amounts to approximately DKK 5 billion (around EUR 670 million; USD 783 million) for Ørsted’s 50 per cent share of the project, which the company co-owns with Skyborn Renewables. Once complete, Revolution Wind is expected to have an annual run-rate EBITDA contribution of approximately DKK 1 billion (around EUR 134 million; USD 157 million), the developer says.

Ørsted has confirmed the extraordinary general meeting is scheduled for 5 September 2025 and will launch the rights issue after board approval.

At the Sunrise Wind site, located approximately 30 miles (approximately 48 kilometres) east of Montauk, New York, construction has already started, with the first foundations now installed.

The first wind turbines at Sunrise Wind are expected to be installed in early 2026, with the offshore wind farm on track to be commissioned in the second half of 2027, according to a project update Ørsted provided in its report for the first half of the year on 11 August.

Ørsted, which initially partnered with Eversource on the project, is building Sunrise Wind alone after Eversource exited the project in 2024 and Ørsted was unable to complete the planned partial divestment and non-recourse project financing on favourable terms.

With the capital raised through the planned rights issue, the company plans to finance the increased CapEx requirement that comes with sole ownership of the project under construction. Of the DKK 60 billion to be raised, Ørsted will pour approximately DKK 40 billion (around EUR 5.4 billion; USD 6.3 billion) to build Sunrise Wind.

The total investment in Sunrise Wind and Revolution Wind, on a 100 per cent basis, is expected to be approximately DKK 100 billion (around EUR 13.4 billion; USD 15.7 billion). The remaining share of Ørsted’s investments into the projects is approximately DKK 45 billion (around EUR 6 billion; USD 7 billion). As of 30 June 2025, the carrying value of Revolution Wind and Sunrise Wind on Ørsted’s balance sheet amounts to approximately DKK 17 billion (around EUR 2.3 billion; USD 2.7 billion), the company says.

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