Funding strategy

Long-term assets financing

We finance our long-term assets primarily through operations cash flows and debt issuance, such as bonds, in the Euro markets. We plan to supplement this with other competitive financing arrangements with banks, multilateral institutions, Danish mortgage institutions and other lenders and investors. As part of our funding strategy, and to provide flexible and efficient access to funding, we have established a Debt Issuance Program. We have also committed credit facilities to provide access to back-up liquidity.

Cash position and debt management

We manage our cash position and debt profile through a range of policies. We focus on minimizing re-financing risk by diversifying funding sources over time and securing cash availability and undrawn committed credit lines. In general, we seek to minimize group liquidity and debt by allocating excess liquidity in subsidiaries to group parent, Ørsted A/S.

Risk management

The purpose of the Group’s risk management is to continuously identify, assess and manage financial and non-financial risks and reduce them to an acceptable level. The management of market risks – primarily prices for oil, gas and electricity as well as currency and interest rate risks – is based on the Group’s desire for a stable and robust performance, to protect the value of our assets and to reduce the volatility in near to mid-term cash flows.