Scatec ASA

Share Issue/Capital Change • Jul 19, 2023

Release by Scatec raises USD 102 million to accelerate growth ambitions

Release by Scatec raises USD 102 million to accelerate growth ambitions

Oslo 19 July 2023: Release by Scatec ("Release") signed an agreement to raise

USD 102 million (NOK 1 billion) in funding from Climate Fund Managers ("CFM") to

further accelerate its growth ambitions. Release was established by Scatec ASA

("Scatec") in 2019 to offer a flexible 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. CFM will contribute USD 55 million in equity for a 32% stake in

Release. Scatec, a renewable energy frontrunner in emerging markets, 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 are very excited to have Climate Fund Managers join us as a partner to

accelerate the significant growth potential of the Release platform. Scatec is

establishing a strong partnership and has raised external financing through a

value accretive transaction to fund Release's growth ambitions. Release is

offering a unique renewable energy 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.

"Today's transaction establishes Release as a strong and independent company

while Scatec remains the main shareholder and offers services to support Release

and drive synergies in the next phase of the company's development," adds

Pilskog.

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.

"We are excited to have a partner as strong as CFM on board and one who shares

our view of the potential and aspirations for our business concept. The new

shareholder funding will be supplemented by Release through additional debt and

guarantee facilities that are currently in advanced negotiations. This gives us

the financial foundation we need to meet the strong demand for our flexible

leasing model, for easily deployable renewable power plants," says Release CEO,

Hans Olav Kvalvaag.

"CFM's purpose is to help end the climate crisis. We do this by raising and

deploying cutting-edge blended finance funds at scale and at pace. 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 CFM CEO, Andrew Johnstone.

After closing of the transaction, Release will be accounted for as a joint

venture investment in the group accounts of Scatec, which will generate 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. Closing of the transaction is expected in the third quarter of

2023, subject to customary conditions precedent.

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: Aidan Wildschut, Senior Communications and Public Affairs

Coordinator, tel: +27 663 94 1407, aidan.wildschut@scatec.com

(mailto:aidan.wildschut@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 4.6 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

Designed to overcome financial and technical barriers associated with adopting

solar energy, Release is a flexible leasing agreement of pre-assembled solar PV

and battery equipment to deliver a low cost, clean, and reliable power solution.

Focusing on medium and large energy consumers in emerging markets, we use our

experience, competence, and global presence to make reliable solar power

available to a larger audience. https://releasesolar.com/

This information is considered to be inside information pursuant to the EU

Market Abuse Regulation and is subject to the disclosure requirements pursuant

to Section 5-12 the Norwegian Securities Trading Act.

This stock exchange announcement was published by Aidan Wildschut, Senior

Communication and Public Affairs Coordinator at Scatec ASA, on 19 July 2023 at

08:00 CEST.