LONDON, UK: Ørsted, a leading renewable energy company, has made history by becoming the first energy company to issue blue bonds on World Ocean Day. The EUR 100 million blue bond, issued in accordance with the IFC Blue Finance Guidelines, will support investments in offshore biodiversity and sustainable shipping, aligning with Ørsted’s commitment to achieving a net-positive impact on biodiversity by 2030.

The blue bond, a five-year, EUR 100 million fixed-rate bond with a maturity date in 2028, aims to diversify and expand sustainable ocean financing. Introduced in 2018, blue bonds direct finance towards projects in the ocean that have positive environmental, economic, and climate benefits.

The funds raised through the bond issuance will be used to finance initiatives focused on offshore biodiversity and sustainable shipping. Ørsted plans to invest in measures to protect and restore marine and coastal biodiversity, as well as innovative solutions to scale these efforts. Additionally, the company aims to play a leading role in the development of green ocean fuels, contributing to the decarbonization of ocean vessels.

Sanda Ojiambo, UN Assistant Secretary-General and CEO of the UN Global Compact, highlights the importance of blue bonds in scaling solutions for a sustainable ocean economy. She emphasizes the need for increased financing to support projects that address various environmental and social challenges, underscoring the role of private sector-issued blue bonds in achieving these goals.

Recognizing the interconnectedness of climate change and biodiversity, Ørsted has set ambitious targets to deliver a net-positive biodiversity impact for all new renewable energy projects commissioned from 2030. The company seeks not only to mitigate potential negative impacts but also to actively enhance the health of ocean ecosystems through restoration measures.

Blue bonds represent an opportunity to bridge the financial gap for sustainable ocean action. Building on the success of the green bond market, which has exceeded USD 2 trillion in total issuance, the market for blue bonds is expected to experience significant growth. Ørsted, known for its sustainable green finance initiatives, aims to contribute further through blue bond financing.

The private placement bond was arranged by NatWest Markets N.V. and subscribed to by investors, including APG on behalf of ABP, with APG being the largest cornerstone investor. The investment in Ørsted’s inaugural blue bond reflects a commitment to restore and protect marine life while aligning with climate goals and addressing the biodiversity crisis.

The issuance of blue bonds by Ørsted marks a significant milestone in advancing sustainable ocean financing and underscores the company’s dedication to the environment and the conservation of marine resources.

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