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issuance of a 19-year USD 334.5 million non-recourse Green Project Bond.
The refinancing will provide increased leverage, extended tenor, and reduced
interest costs which will improve Scatec’s and its project partner’s future cash
distributions from the power plants.
The Project Bond benefits from a Climate Bond certificate from the Climate Bond
Initiative. This innovative climate finance transaction is the first of its kind
in Africa and has been distributed to a consortium of development finance
institutions, comprising the European Bank for Reconstruction and Development
(EBRD), the US International Development Finance Corporation (DFC), the Dutch
entrepreneurial development bank FMO and German Investment Corporation
DEG, alongside private institutional investors from around the globe.
Multilateral Investment Guarantee Agency (MIGA), a part of the World Bank Group,
and EBRD risk mitigation instruments were incorporated into the structure to
facilitate distribution to the private sector investors, including major
institutions for whom these are first-ever investments in Egypt. This innovative
capital markets exercise has benefitted from the proactive encouragement of the
Government of Egypt. Mitsubishi UFJ Financial Group acted as arranger for the
bond issue.
The credit enhancement structure establishes an efficient 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 the
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.
Once again, we have demonstrated our ability to find innovative financial
solutions and new funding sources to enhance project returns,” says Scatec CFO
Mikkel Tørud.
“The refinance is being granted for six operational photovoltaic power plants
participating with capacity 380 MW in the Benban Solar Park with total capacity
1465 MW, initiated as part of the Egyptian government’s ambitious Sustainable
Energy Strategy for the period ending 2035. The Benban Solar Park is funded by
private sector capital, enabling the Egyptian government to support its goal of
generating 20% electricity from renewable energy resources by 2022. The Benban
Solar Energy Complex was selected as the best infrastructure development project
winning the Arab Government Excellence Award in 2020. It was also named as the
most successful project implemented by the World Bank in 2019. The agreement
signed today is reflecting the huge confidence of the private sector in the
Egyptian electricity sector”, said Dr. Mohamed Shaker, the Minister of
Electricity of the Arab Republic of Egypt.
“This landmark transaction showcases Egypt’s pioneering presence in the green
financing 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 Egyptian economy’s exhibited
resilience during the COVID-19 pandemic, better refinancing terms have been
obtained for this transaction, which is a hoped-for development that green
financing is obtained at better terms compared to other traditional financing
options. We aim to continue the path of encouraging additional sustainable
financing options in the future,” says Dr. Mohamed Maait, the Minister of
Finance of the Arab Republic of Egypt.
“As highlighted at COP26, Africa must leverage innovative mechanisms to further
attract much-needed investments into climate-resilient infrastructure projects.
This pioneering transaction demonstrates Africa50’s commitment to mobilizing
funding from international capital markets to support its shareholder countries’
transition to low-carbon economies, while generating attractive returns,” says
CEO of Africa50 Alain Ebobisse.
“We are delighted to continue our support of Egypt’s renewable energy sector and
to mobilise new private and institutional capital through this highly innovative
and timely instrument,” says Nandita Parshad, EBRD Managing Director for
Sustainable Infrastructure group.
For further information, please contact:
Andreas Austrell, VP IR
Tel: +47 974 38 686, andreas.austrell@scatec.com
(mailto:andreas.austrell@scatec.com)
About Scatec
Scatec is a leading renewable energy solutions provider, 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 plants, with 3.5 GW
of installed capacity across four continents today. We are targeting 15 GW of
renewable capacity to be in operation or under construction by the end of 2025,
delivered by our 600 passionate employees who are driven by a common vision of
‘Improving our Future’. Scatec is headquartered in Oslo, Norway and listed on
the Oslo Stock Exchange under the ticker symbol ‘SCATC’. To learn more,
visit www.scatec.com (https://www.globenewswire.com/Tracker?data=vr-
I0kn3Hk6syN1556T2ScLONZ4eFOv11fHMwNuys4xtmwjcE8dlfvlOsnE7qFQLG9gduWfwfW_HJqvi-
NRsEg==) or connect with us on LinkedIn
(https://www.linkedin.com/company/scatec).
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 funding, with
differentiated financial returns and impact. Africa50 currently has 31
shareholders, comprised of 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 (http://www.africa50.com)
About EBRD
The EBRD is a multilateral bank that promotes the development of the private
sector and entrepreneurial initiative in 38 economies across three continents.
The Bank is owned by 71 countries as well as the EU and the EIB. EBRD
investments are aimed at making the economies in its regions competitive
(http://www.ebrd.com/transition/competitive.html), inclusive
(http://www.ebrd.com/transition/inclusive.html), well-governed
(http://www.ebrd.com/transition/well-governed.html), green
(http://www.ebrd.com/transition/green.html), resilient and integrated
(http://www.ebrd.com/transition/integrated.html). Follow us on the web
(http://www.ebrd.com/home), Facebook (http://www.facebook.com/ebrdhq), LinkedIn
(http://www.linkedin.com/company/ebrd), Instagram (https://www.instagram.com/),
Twitter (http://twitter.com/ebrd) and YouTube (http://www.youtube.com/ebrdtv).
This information is subject to the disclosure requirements pursuant to Section
5-12 the Norwegian Securities Trading Act
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