**Reasoning** - **Current hybrid position:** Ørsted already has hybrid capital of DKK 19.8 bn (≈ 13 % of adjusted capital). With a 50 % equity‑credit treatment, the current equity‑credit from hybrids is about 6.3 % of total adjusted capital, well below the 15 % cap. - **Adjusted capital base:** Total adjusted capital (equity excl. hybrids + total debt + 50 % hybrid) is roughly DKK 157 bn. The 15 % ceiling therefore permits up to ~ DKK 23.6 bn of equity‑credit (≈ DKK 47 bn of hybrid face value). The company can issue a material amount of new hybrid without breaching the limit. - **Funding needs and capex intensity:** Ørsted is engaged in a large‑scale expansion of offshore wind assets, with construction‑in‑progress of ~ DKK 49 bn and a continued acquisition pipeline. Cash generation (FFO ≈ DKK 27 bn) covers only part of the required investment, so external financing is needed. - **Leverage and rating headroom:** Debt/EBITDA is about 2.2× and FFO/debt ≈ 38 %, comfortable but with limited headroom for further debt accumulation. Issuing hybrid improves adjusted leverage and preserves the investment‑grade rating while funding the capex programme. - **Cost considerations:** With market rates having risen sharply (5‑year swap average 1.73 % in 2022), the cost of senior debt has increased. A hybrid issuance would add a modest coupon premium, but the benefit of equity‑credit and leverage improvement outweighs the marginal cost impact, especially at the 11.25 % level. - **Guideline alignment:** The 11.25 % bucket corresponds to “high capex intensity or large acquisition pipeline” and “significant leverage pressure,” matching Ørsted’s situation. It also offers a “marginal impact on the current cost of debt,” consistent with the cost analysis. **Conclusion** Given the substantial capex pipeline, moderate leverage, need for rating headroom, and the already existing hybrid position, Ørsted should utilise hybrid bonds at the upper‑moderate level of **11.25 % of total adjusted capital** over the next 18 months. 11.25%