Scatec ASA

Capital/Financing Update • Dec 13, 2023

Release by Scatec partners with IFC for clean and affordable power to Africa

Release by Scatec partners with IFC for clean and affordable power to Africa

13 December 2023: Release by Scatec (Release), has signed a USD 100 million loan

agreement with the World Bank's International Finance Corporation (IFC). The

loan agreement is part of a larger partnership to provide a simpler, more

affordable, and cleaner offering of power to African utilities, which also

includes a USD 65 million guarantee facility to support the payment obligations

of Release's customers.  The objective is to replace costly diesel and expand

electrification in the region.

Release operates on a unique leasing model, providing flexible short- or long-

term contracts for the mining and utilities market, primarily in Africa, based

on modular, movable and redeployable equipment.

IFC is the largest global development institution renowned for its instrumental

role in supporting private sector development, and the loan from IFC will

provide funding on a portfolio level for Release's further development and

installation of assets to be leased to African utilities.

The purpose of the guarantee facility is to guarantee payments to Release from

the counterparties leasing the solar and battery equipment. The structure

provides risk mitigation for Release while allowing African utilities and

governments to secure affordable renewable energy from solar and batteries,

without the financial commitment required for the conventional infrastructure

projects. The partnership with IFC will thereby represent a significant catalyst

for further growth of the Release platform.

The first project where the combined project loan and guarantee structure will

be applied is for a 35 MW solar and 20 MWh battery project in N'djamena in Chad,

where a lease contract has already been signed. Release's existing and operating

projects in Northern Cameroon of 36 MW of solar PV and 20 MWh of batteries will

also form part of the portfolio financing and discussions on extending the

capacity of these projects are currently ongoing with the utility.

"This highly innovative solution enables countries to deploy solar power

projects quickly, allowing African countries to swiftly ramp up to meet rising

energy demand with clean power solutions," said Sarvesh Suri, IFC's Regional

Industry Director for Infrastructure and Natural Resources, Africa. "Our

ambition is to deploy this replicable solution, in partnership with Release in

multiple countries across sub-Saharan Africa within a short timeframe, allowing

more people to benefit from the economic growth that comes with reliable,

affordable access to electricity."

"I am delighted that, through this partnership between Scatec and IFC, Chad has

been chosen as the first country to benefit from a solar power plant to support

the government's efforts to meet the energy access needs of our populations,"

said Alixe Naïmbaye, Minister of Hydrocarbons and Energy of Chad.  "In addition,

the liquidity guarantee facility granted by the World Bank to Société Nationale

d'Electricité underlines the strong commitment of the World Bank Group to

facilitating partnerships with private investors."

"We are excited to secure the partnership with IFC for our innovative solar

leasing solution Release. IFC's support is testimony to the solid business model

of Release, the general demand and need for such an innovative solution in the

market and our proven track record in developing renewable energy solutions,"

says Scatec CEO, Terje Pilskog, who is also Chair of Release.

"The innovative approach of Release follows a dynamic rolling delivery model of

build, connect, and deliver. Looking ahead, Release is actively exploring

additional opportunities in Cameroon, Liberia, and the rest of West- and

Central-Africa, reinforcing its commitment to advancing renewable energy

solutions across the African continent and other select markets," says Release

CEO Hans Olav Kvalvaag.

This significant step comes after Release recently raised USD 102 million in

funding from Climate Investor One, a fund managed by Climate Fund Managers, a

leading climate-centric blended finance fund manager backed by FMO, the Dutch

Development Bank, and Sanlam Infraworks, part of the Sanlam Group of South

Africa.

For further information, please contact:

For analysts and investors: Andreas Austrell, VP Investor Relations, tel:

+47 974 38 686, andreas.austrell@scatec.com

For media: Meera Bhatia, SVP Communications & Government Affairs, tel:

+47 468 449 59, meera.bhatia@scatec.com (mailto:meera.bhatia@scatec.com)

For images, please see Release image gallery (https://releasesolar.com/news-

downloads/)

About Scatec

Scatec is a leading renewable energy solutions provider, accelerating access to

reliable and affordable clean energy emerging markets. As a long-term player, we

develop, build, own, and operate renewable energy plants, with 4.3 GW in

operation and under construction across four continents today. We are committed

to grow our renewable energy capacity, delivered by our passionate employees and

partners 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://scatec.com/) or connect with us on LinkedIn

(https://www.linkedin.com/company/scatec).

About Release

Release is a modular and movable solar PV and Battery Energy Storage offering

"energy-as-a-service". The equipment is pre-financed and deployed under a simple

and flexible leasing contract. The mobility of the equipment enables Release to

assess its useful lifespan, enabling the company to provide cost-effective

short-term contracts. Release is gaining momentum in the market and has projects

in operation and under construction in Cameroon, South Africa, Mexico, and South

Sudan, boasting a combined capacity of 47 MW of solar PV and 20 MWh of battery

storage.

Release is owned 68% by Scatec and 32% by Climate Investor One, managed by CFM.

This information is subject to the disclosure requirements pursuant to Section

5-12 the Norwegian Securities Trading Act