Funding and rating information

 

 

 

Financing strategy

Vestas finances its operations and investments through a combination of its own generated cash flow and external funding.

 

We are a reliable and valued partner in financial markets. Thereby, cultivating the relationships with our key debt capital investors is an inherent part of our financing strategy.

Funding goal and principles

Our overall funding goal is to secure adequate and sufficient supply of capital and to minimize, within stipulated internal directives and adopted risk limits, the long-term funding costs.

Vestas’ business operations are capital intensive with major seasonal fluctuations, which make it necessary to have both short-term and long-term funding available to secure its financial flexibility needs.

Risk management - liquidity risks

Managing financial risks are an inherent part of our operating activities through its international operations. We are exposed to a number of financial risks, why the monitoring and control of financial risks is important for Vestas.

Additional information see the Annual Report note Capital structure and financing items.

Treasury and financing policy

Our Treasury Policy sets the limits for the various financial risks as well as our policy of only hedging commercial exposures and not entering into any speculative transactions. We manage our liquidity risks according to the Treasury Policy and ensures to have sufficient financial resources to service its financial obligations. Financial resources are managed through a combination of cash on bank account and money market deposits, committed credit facilities, and highly rated marketable securities. The liquidity is managed and optimised centrally by using cash pools and in-house bank solutions.

Green bond

File title:
Prospectus - dated 9 March 2015
File title:
Company announcement 11/2015 - 4 March 2021

In 2015, Vestas issued a EUR 500m green corporate bond, ref. company announcement no. 11/2015 of 4 March 2015. 

The green bond benefits from a second party opinion provided by certification institute DNV GL. The bond allows us to diversify and optimise its funding structure. 

Reporting 

The green bond is a general corporate purpose bond and we report on relevant investments in production capacity, R&D, and new products in the audited annual reports.

In addition, Vestas discloses a broad range of its material environmental and social targets and impacts on a corporate level.

Basic data  
Issuer Vestas Wind Systems A/S
Amount EUR 500m
Coupon 2.75%
Type Senior, unsecured
Issue date 11 March 2015
Maturity date 11 March 2022
Coupon payments Annual payment 11 March
Documentation Stand-alone
Listing Luxembourg Stock Exchange
ISIN code XS1197336263

Credit facilities

Our main credit facility, a EUR 2,000 million sustainability-linked revolving credit facility, was signed in April 2021. The facility has a five-year duration with an option to extend the maturity one or two additional years.

The facility is available for general corporate purposes including guarantees issuance in relation with wind power projects.

 

As part of Vestas’ strategy to bring Sustainability in Everything We Do, the facility’s margin will be closely linked to Vestas’ sustainability KPIs.

The following banks participate in the revolving credit facility (Mandated Lead Arranger and Bookrunner in alphabetical order):

  • Banco Santander
  • BNP Paribas
  • Citi
  • Danske Bank
  • DNB
  • HSBC
  • JP Morgan
  • Nordea
  • Skandinaviska Enskilda Banken
  • Société Générale
  • Standard Chartered
  • Unicredit

Credit rating

We have solicited a credit rating from one rating agency: Moody’s.

Moody’s assess Vestas according to two main parameters:

  • Business risk analysis, comprising industry characteristics, competitive position, management, and business strategy.
  • Financial risk analysis, comprising financial policy, cash flow protection, profitability, capital structure, and financial flexibility.

 

Current rating and outlook

Agency  Long-term rating Outlook Latest rating action Rating analyst
Moody’s Baa1 Stable 2 February 2021
Initial Credit Opinion       
Oliver Giani
+49 69 70730 722