Orsted’s share price has fallen over 28% in trading following the announcement of its €8bn rights issue.
As of 12 noon, the company’s shares were trading for DKK221.20, down 28.3% on opening.
Orsted will look to raise DKK60bn (€8bn) through a rights issue, backed by the Danish State as majority shareholder, after abandoning plans to partially divest its Sunrise Wind offshore wind farm in the US.
The developer said the move follows “material adverse” developments in the US offshore wind market that made it impossible to conclude the planned partial sale and associated non-recourse project financing on terms that would strengthen its balance sheet.
The proceeds will be used to strengthen Ørsted’s capital structure through to 2027 and give it the flexibility to deliver its 8.1GW offshore wind construction portfolio while maintaining an investment-grade credit rating, the company stated.
The package is also intended to cover incremental funding needs from taking full ownership of Sunrise Wind, preserve and optimise the value of operational and under-construction assets, and give the company more control over the timing of farm-downs and partnerships.