DONG Energy is a large Danish energy company and one of the most important developers of offshore wind farms in Europe. In addition, it produces, procures, trades and distributes energy in Northern Europe. Numerous pension funds from both Denmark and abroad have invested in wind farm projects of DONG.
Since interest rates have been at historic lows over the last few years, the yield on government bonds and other so-called low-risk investments, traditionally bought by pension funds, has decreased significantly. The result has been depressed returns on funds. Returns on wind farms, similar to other investments in large infrastructure projects, may provide more attractive returns. Funds that have invested in such assets have been able to boost their yield, thus improving the expected income of many pensioners in decades to come.