Flexible solar leasing solution “Release by Scatec” closes USD 102 million capital financing round
27 Ottobre 2023 - 10:00AM
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 For media:
Meera Bhatia, SVP Communications & Government Affairs, tel: +47
468 449 59, 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 or connect with us
on LinkedIn.
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