Scatec ASA

Capital/Financing Update • Apr 28, 2022

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

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

Oslo, 28 April 2022: Scatec, a leading renewable energy solutions provider, and

its partners have refinanced the non-recourse project debt for six solar power

plants in Egypt, with a total capacity of 380 megawatts (MW), through the

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