Scatec ASA

Capital/Financing Update • Oct 27, 2023

Flexible solar leasing solution "Release by Scatec" closes USD 102 million capital financing round

Flexible solar leasing solution "Release by Scatec" closes USD 102 million capital financing round

27 October 2023, Oslo: Release by Scatec ("Release") today closed the previously

announced USD 102 million (NOK 1.1 billion) transaction with Climate Fund

Managers ("CFM"). The funds will be used to further accelerate its growth

ambitions as a separate platform. Release was established by Scatec ASA

("Scatec") in 2019 to offer a flexible and mobile leasing solution of pre-

assembled and modular solar and battery equipment for the mining and utilities

market.

CFM is 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. The company invested in Release via its Climate Investor One (CIO) fund;

a blended finance vehicle focused on renewable energy infrastructure in emerging

markets. As previously communicated, CFM will contribute USD 55 million in

equity for a 32% stake in Release. Scatec will retain the majority shareholding

of 68%. CFM will also provide shareholder loans totalling USD 47 million, part

of which will be on concessional terms.

"We welcome Climate Fund Managers as a strategic partner to fuel the solid

growth journey of the Release platform. With this collaboration, we are not only

raising funds; we are sharing the future of renewable energy solutions. Release

is offering a unique solution in a rapidly growing market segment that requires

a different business model than Scatec's larger scale project business," says

Scatec CEO, Terje Pilskog, who is also the Chair of Release. "We are excited to

reach this key strategic milestone for Release. It is testimony to Release's

unique business model and Scatec's ability to attract top climate-oriented fund

managers on a mission to invest in value accretive projects in emerging

economies."

Release represents Scatec's innovative approach to distributed generation solar

PV and Battery Energy Storage Systems (BESS) for projects beginning from 5MWp

blocks, matching a need for delivering simple and on-demand renewable energy

solutions. This modular solution comprises pre-assembled and containerised

movable trackers and storage units. The equipment is pre-funded and deployed

through a straightforward and adaptable leasing agreement, lasting at least 5

years and up to 15 years, akin to leasing a car. The mobility of the equipment

enables Release to assess its useful lifespan, enabling the company to provide

cost-effective short-term contracts, even for 5-year leases. This flexibility

ensures competitive pricing while maintaining high-quality service and

technology.

Release is experiencing good traction in the market, particularly towards

African utilities. It has projects in operation and under construction in

Cameroon, South-Africa, Mexico, and South-Sudan with a total capacity of 47 MW

solar PV and 20 MWh of battery storage and has additional contracts for 35 MW

solar PV and 20 MWh of storage in Chad, in addition to maturing its advanced

pipeline. Release intends to replicate its rapid deployment model to address

shortfalls in local grid power supplies throughout the region.

"Our blended finance model facilitated the integration of impact finance into

the deal structure, which Release will be able to leverage to improve its cost

structure for its battery and grid connection solutions, allowing Release to

offer even more competitive pricing and better value to its clients. We are

delighted to support the Release team as they roll-out their critical climate

technology across Africa, helping significantly reduce the emissions of the

mining and utility sectors," says Climate Fund Manager's Darron Johnson, Head of

Africa Investments

Release will now be accounted for as a joint venture investment in the group

accounts of Scatec, generating an accounting gain of approximately USD 40

million in the consolidated financials at closing. There will be no impact on

the proportionate financials from the transaction.

Rand Merchant Bank ("RMB"), a division of First Rand Bank Limited, acted as the

sole financial advisor to Scatec on the transaction.

For further information, please contact:

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

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

(mailto: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)

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 4.4 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).