Vestas to seek funding with euro bonds offer

DENMARK: Vestas has announced it is issuing euro bonds for the first time as its seeks to raise new funds.

Vestas opts to issue euro bonds in funding push

According to reports, the issue is likely to be in the region of €500million with the bonds coming to maturity in five years. Vestas has said the money will go towards general financing and corporate purposes.

Speaking about the decision Henrik Nørremark, executive vice president and chief financial officer of Vestas , said: "For a large European corporation like Vestas, it is natural to investigate opportunities in various capital markets.

We consider the euro bond market an attractive source of financing as it offers longer term visibility and attractive pricing, which is why we have decided to proceed with the launching of a corporate bond."

In Vestas' annual results for 2009, the company said it expected to achieve a pre-tax margin of 10-11% and revenue of €7bn for 2010. Previously it expected 10-12% pre-tax margin and €7-8billion in revenue.

There have also been questions recently over whether Vestas is in danger of losing its position as the world's number one wind turbine manufacturer after it was revealed its share had dropped to 13%.

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