Scatec ASA

Capital/Financing Update • Mar 6, 2018

Scatec Solar closes financing for Mozambique's first large scale solar plant

Scatec Solar closes financing for Mozambique's first large scale solar plant

March 6, 2018: Scatec Solar, KLP Norfund Investments and Electricidade de

Mozambique (EDM) have closed debt financing and initiated construction of a 40

MW solar plant in Mozambique. The project debt financing is provided by IFC, the

International Finance Corporation, a member of the World Bank Group, and the

Emerging Africa Infrastructure Fund.

This is the first large scale solar plant to be built in the country and

represents an important step in realizing Mozambique's ambition to increase

renewable power generation in its energy mix.

The partners signed a Power Purchase Agreement (PPA) for the solar plant in

October 2016. The PPA secures the sale of power from the plant over a 25-year

period to the state-owned utility Electricidade de Mozambique (EDM).

The 40 MW plant is located close to the city of Mocuba in the Zambézia Province,

and is expected to deliver 79,000 MWh per year of much needed electricity to the

northern regions of Mozambique. The plant will deliver power to the national

grid and produce enough energy to serve about 175,000 households.

The project costs are estimated at US$ 76 million, funded through equity of US$

14 million, a grant of US$ 7million and project debt of US$ 55 million. Equity

partners are Scatec Solar (52.5%), KLP Norfund Investments (22.5%) and EDM

(25%). Scatec Solar will deliver Engineering, Procurement and Construction (EPC)

services, as well as Operation and Maintenance (O&M) and Asset Management

services to the power plant.

IFC provided project debt of US$ 19 million on its own account together with a

concessional loan from the Climate Investment Fund of the same size and a

syndicated loan of US$ 17 million from the Emerging Africa Infrastructure Fund

(EAIF), managed by Investec Asset Management, which is part of the Private

Infrastructure Development Group (PIDG). In addition, EAIF is directly providing

a US$7 million Viability Gap Funding grant for the project raised from the

Technical Assistance Fund of the PIDG.

"EDM is very pleased that the Mocuba Solar IPP project has reached financial

close through a well-structured public-private partnership between EDM, Scatec

Solar and Norfund, and with excellent support from IFC and EAIF as lenders, as

well as the Government of Norway", says EDM's Chairman and CEO, Dr Mateus

Magala. "Experiences gained with the Mocuba project is invaluable in shaping

Mozambique's renewable energy future."

"Closing debt financing for the Mocuba solar power plant is another great

achievement for Scatec Solar and our partners", says Scatec Solar CEO, Raymond

Carlsen.

"Norfund appreciates being a partner in this first solar power project in

Mozambique. Access to reliable energy is a prerequisite for development. Clean

energy is therefore a focus investment area for us", says Norfund Executive Vice

President, Mark Davis.

Oumar Seydi, IFC Director for Sub-Saharan Africa, said: "IFC is committed to

bridging Africa's infrastructure gap while promoting clean energy. This project

is in one of the least developed provinces of Mozambique. It will diversify the

country's power generation mix and help increase access to electricity. By

supporting projects like Mocuba, IFC, EAIF and PIDG are helping to encourage the

participation of other private investors in Mozambique's power sector."

Nazmeera Moola, Head of EAIF at Investec Asset Management, said: "Renewable

energy and affordable energy is a key area of growth for the Emerging Africa

Infrastructure Fund and PIDG. By supporting this project, EAIF was able to make

the project bankable by providing long tenors. Furthermore, by facilitating a

VGF grant from the Technical Assistance Fund of the PIDG, the PIDG group was

able to contribute to reducing the cost of electricity for Mozambique."

Scatec Solar is a leading developer and owner of large scale solar in emerging

markets.

For further information, please contact:

Scatec Solar:

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 source of clean energy worldwide.

A long term player, Scatec Solar develops, builds, owns, operates and maintains

solar power plants, and already has an installation track record of 1,000 MW.

Currently, the company is producing electricity from 322 MW of solar power

plants in the Czech Republic, South Africa, Rwanda, Honduras and Jordan and

another 434 MW are under construction.

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

project backlog and pipeline of more than 1.5 GW under development in the

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

Oslo, Norway