Ørsted raises 9bn cash call

Danish wind group Ørsted plans a 9 billion cash call as its market value falls amid shifts in US offshore wind policy and higher project costs.

Ørsted funds 9 billion cash call after US market slump

Ørsted said it would raise more than $9 billion through a rights issue to strengthen its balance sheet. The move follows a slide in the company’s market value to an all‑time low, driven by weaker US project valuations and rising costs. The company had planned to fund part of Sunrise Wind and Revolution Wind by selling stakes in those projects, but a market hit by policy changes made that approach impractical. Danish government backing supports the capital raise, underscoring the state’s stake in Ørsted.

The backdrop includes higher construction costs, supply chain problems, and rising interest rates, which have increased the price of new offshore wind farms. President Trump’s policy reviews of offshore wind and permitting have unsettled investors and clouded the outlook for US projects, even as Biden’s team has shown some support for the sector. Ørsted says the rights issue will provide financial robustness and help realize the full value of its existing portfolio as it pursues more projects globally.

The fundraising signals how offshore wind now relies on a mix of private capital and government backing. Policy risk in the United States has grown into a key factor that can swing project valuations and financing conditions. Ørsted’s move may reassure lenders and shareholders in the short term, but it also exposes the company to dilution and continued volatility if policy pressures persist. Investors will be watching whether the Danish government’s involvement translates into steadier access to capital or just more political scrutiny over energy subsidies and project costs.

Highlights

The wind can blow in many directions, but capital discipline will decide how far offshore power goes.