Danish offshore wind developer Orsted said on Monday it raised DKK59.56 billion ($9.35 billion) in a heavily discounted share issue, shoring up finances as Trump administration opposition has caused uncertainty for its US projects.
The company said 99.3 per cent of the rights issue was subscribed, with demand for the remaining shares described as “extraordinarily high.”
The price was DKK66.6 per share, well below Monday’s market price of DKK122.35.
The issue was open to existing shareholders, and the Danish state, which controls the company, accounted for 50.1 per cent of the new issue. Norwegian energy firm Equinor, a 10 per cent shareholder in Orsted, had said it would also participate.
“The rights issue strengthens Orsted’s financial foundation, allowing us to focus on delivering our six offshore wind farms under construction, continue to handle the regulatory uncertainty in the US, and strengthen our position as a market leader in offshore wind,” Orsted CEO Rasmus Errboe said.
The Trump administration in August ordered Orsted to stop already advanced construction on the Revolution Wind project off the Rhode Island coast, but the ban was later lifted by a US federal judge, allowing the company to restart the work.
President Donald Trump campaigned on a promise to end the controversial offshore wind industry, saying it is too expensive and hurts whales and birds, while at the same time promoting oil and gas.
Squeezed by inflation, higher interest rates and supply chain delays, Orsted in August said that two-thirds of the new capital would be used to fund construction of its Sunrise Wind project off the US East Coast after potential partners were put off by Trump’s opposition to wind power.
The company last month unveiled details of its plan.
The new issue is critical for Orsted’s survival and averting another credit downgrade, though S&P Global warned it may provide only three to six months of relief.
(Reporting by Louise Rasmussen and Rishabh Jaiswal; Editing by Cynthia Osterman)