Scatec refinances six power plants in Egypt with a Green Project Bond

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Scatec ASA

Oslo, April 28, 2022: Scatec, a leading provider of renewable energy solutions, and its partners have refinanced the non-recourse debt of the project of six solar power plants in Egypt, with a total capacity of 380 megawatts (MW ), by issuing a non-recourse Green Project Bond of USD 334.5 million over 19 years.

The refinancing will provide increased leverage, extended duration and reduced interest costs, which will improve future cash distributions of Scatec and its project partner from the power plants.

The Project Bond benefits from a Climate Bond certificate from the Climate Bond Initiative. This innovative climate finance operation is the first of its kind in Africa and was distributed to a consortium of development finance institutions, comprising the European Bank for Reconstruction and Development (EBRD), the American Development Finance Corporation international (DFC), the Dutch development bank FMO and the German investment company DEG, alongside private institutional investors from around the world.

The Multilateral Investment Guarantee Agency (MIGA), part of the World Bank Group, and EBRD risk mitigation instruments have been incorporated into the structure to facilitate distribution to private sector investors, including including major institutions for which these are the very first investments in Egypt. This pioneering exercise in capital markets benefited from the proactive encouragement of the Egyptian government. Mitsubishi UFJ Financial Group acted as arranger for the bond issue.

The credit enhancement structure sets an effective precedent for future transactions, including the prospect of an investment grade credit rating for the green bond.

“With this innovative green transaction, we have gained access to international debt capital markets for project financing, improved our financing terms and supported Egypt’s ambition to become a green hub in the Middle East. East. Once again, we have demonstrated our ability to find innovative financial solutions and new sources of financing to improve project returns,” says Mikkel Tørud, CFO of Scatec.

“The refinancing is granted for six operational photovoltaic power plants participating with a capacity of 380 MW in the Benban solar park with a total capacity of 1,465 MW, launched as part of the Egyptian government’s ambitious sustainable energy strategy for the coming period. ending in 2035. The Benban solar park is funded by private sector capital, enabling the Egyptian government to support its goal of producing 20% ​​of electricity from renewable energy resources by 2022. The solar energy complex de Benban was selected as the best infrastructure development project by winning the Arab Government Award of Excellence and also named as the most successful project implemented by the World Bank in 2019. The agreement signed today reflects the enormous confidence of the private sector in the Egyptian electricity sector,” said Dr. Mohamed Shaker, Minister of Electricity of the Arab Republic. be from Egypt.

“This landmark transaction showcases Egypt’s pioneering presence in the green finance market after its inaugural green bond issuance in 2020, which was the first sovereign green bond issuance in the Middle East and North Africa. . Due to the credit enhancement structure, as well as the resilience of the Egyptian economy during the COVID-19 pandemic, better refinancing terms were secured for this transaction, which is a hoped-for development that green financing is obtained at better conditions compared to other traditional financing options. We aim to continue on the path of encouraging additional sustainable financing options in the future,” said Dr. Mohamed Maait, Minister of Finance of the Arab Republic of Egypt.

“As highlighted at COP26, Africa must leverage innovative mechanisms to attract more much-needed investment in climate-resilient infrastructure projects. This pioneering transaction demonstrates Africa50’s commitment to mobilizing financing from international capital markets to support its shareholder countries’ transition to low-carbon economies, while generating attractive returns,” said Alain Ebobisse, CEO of Africa50.

“We are delighted to continue our support to Egypt’s renewable energy sector and to mobilize new private and institutional capital through this highly innovative and timely instrument,” said Nandita Parshad, EBRD Managing Director for the Sustainable Infrastructure Group.

For more information, please contact:
Andreas Austrell, VP IR
Tel: +47 974 38 686, [email protected]


About Scatec
Scatec is a leading provider of renewable energy solutions, accelerating access to reliable and affordable clean energy in high growth markets. As a long-term player, we develop, build, own and operate renewable energy power plants, with today 3.5 GW of installed capacity on four continents. We are targeting 15 GW of renewable capacity in operation or under construction by the end of 2025, delivered by our 600 passionate employees driven by a common vision: “Improving our Future”. Scatec is headquartered in Oslo, Norway and is listed on the Oslo Stock Exchange under the symbol “SCATC”. To learn more, visit www.scatec.com or join us on LinkedIn.

About Africa50
Africa50 is an infrastructure investment platform that contributes to Africa’s economic growth by developing and investing in bankable infrastructure projects, catalyzing public sector capital and mobilizing private sector finance, with differentiated financial returns and impact. Africa50 currently has 31 shareholders, including 28 African countries, the African Development Bank, the Central Bank of West African States (BCEAO) and Bank Al-Maghrib. For more information visit: www.africa50.com

About the EBRD
The EBRD is a multilateral bank that promotes private sector development and entrepreneurial initiative in 38 economies on three continents. The Bank is owned by 71 countries as well as the EU and the EIB. EBRD investments aim to make the economies of its regions competitive, understood, well governed, greenresilient and integrated. Follow us on the Web, Facebook, LinkedIn, instagram, Twitter and Youtube.

This information is subject to the disclosure requirements in accordance with section 5-12 of the Norwegian Securities Act.

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