Scatec ASA

Capital/Financing Update • Oct 27, 2017

Scatec Solar closes financing for 400 MW in Egypt

Scatec Solar closes financing for 400 MW in Egypt

Oslo, October 27, 2017: Scatec Solar ASA (SSO) and partners have achieved

financial close for six solar PV power plants in Egypt totaling 400 MW. A

consortium of international Development Finance Institutions is providing a non-

recourse project finance of USD 335 million, which accounts for 75% of the

capex.

The consortium consists of EBRD, the United Nations' Green Climate Fund (GCF),

the Dutch development bank, FMO, the Islamic Development Bank (IsDB) and the

Islamic Corporation for the Development of the Private Sector (ICD). This is the

consortium's first joint projects in Egypt's renewable energy sector.

"With this programme, the government of Egypt is making important steps towards

accessing clean and low-cost electricity to drive development and economic

prosperity. Scatec Solar and partners are making significant investments and a

long-term commitment to Egypt'', says Raymond Carlsen, CEO of Scatec Solar.

The six projects involving a total investment of USD 450 million are located in

the Benban solar park in Aswan in Upper Egypt.  Upon completion, Benban will be

the largest solar installation in the world with a planned total capacity of

1.8 GW. ''We are delighted to support the largest solar portfolio in Egypt's

feed-in-tariff scheme and to work again with Scatec Solar'', says EBRD's Head of

Power and Energy Utilities, Harry Boyd-Carpenter.

The Green Climate Fund's contribution of USD 48 million is the highest it has

disbursed to a single recipient and the first under its April 2017 co-operation

agreement with EBRD. "This is a big step forward. It shows the potential for

public and private climate finance to drive the low emission energy transition

in support of Egypt's climate goals," says Ayaan Adam, Private Sector Facility

Director at GCF.

The annual 870 GWh of electricity produced from the 400 MW solar plants will

avoid about 350,000 tons of CO2 emissions per year, supporting Egypt's emission

reduction targets under the Paris Climate Agreement. Egypt has committed to

increase the share of renewables in the country's power mix to 37% by 2035.

The 25% equity will be provided by the three sponsors of the projects, Scatec

Solar, Norfund and Africa50, the Infrastructure Fund for Africa.

Last April, Scatec Solar and partners signed 25-year Power Purchase Agreements

(PPAs) with the Egyptian Electricity Transmission Company and yesterday

delivered the required condition precedents for the PPA to become effective.

Construction is scheduled to commence in early 2018, upon customary governmental

conditions under the renewables program being met.

Scatec Solar will be the turn-key EPC provider for the projects and provide

Operation & Maintenance as well as Asset Management services to the power

plants.

The 400 MW in Egypt adds to Scatec Solar's other projects under construction;

162 MW in Brazil, 197 MW in Malaysia and 35 MW in Honduras. Over the past month

USD 700 million has been secured in non-recourse project finance by Scatec Solar

for these projects.

When the new power plants are in operation Scatec Solar will hold a profitable

and diversified portfolio with a capacity of more than 1,100 MW. This power

plant portfolio will generate stable cash flows over the next 20-25 years and

beyond.

"The addition of the Egyptian projects places Scatec Solar as one of the leading

integrated solar IPPs in emerging markets", adds Raymond Carlsen, CEO of Scatec

Solar.

For further information, please contact:

Mr. Raymond Carlsen, CEO,          tel: +47 454 11 280

raymond.carlsen@scatecsolar.com

Mr. Mikkel Tørud, CFO,                  tel: +47 976 99 144

mikkel.torud@scatecsolar.com

About Scatec Solar

Scatec Solar is an integrated independent solar power producer, delivering

affordable, rapidly deployable and sustainable clean energy worldwide. A long-

term player, Scatec Solar develops, builds, owns, operates and maintains solar

power plants and has an installation track record of 600 MW.

The company is producing electricity from 322 MW of solar power plants in the

Czech Republic, South Africa, Rwanda, Honduras and Jordan and another 394 MW are

under construction.

With an established global presence, the company is growing briskly with a

project backlog and pipeline of 1.5 GW under development in the Americas,

Africa, Asia and the Middle East. Scatec Solar is headquartered in Oslo, Norway

and listed on the Oslo Stock Exchange under the ticker symbol 'SSO'.

To learn more, visit www.scatecsolar.com