Debt

Scatec Solar develops, builds, owns and operates large scale solar power plants.

The solar power plants are structured in project companies (single purpose vehicles) and financed with equity and non-recourse project finance debt. This structure offers isolation of operational and financial risks related to each individual project, and limits Scatec Solar’s exposure to the equity invested and retained in the respective project company. A large share of the funding of Scatec Solar’s equity investments in the project companies are generated through Scatec Solar’s Development & Construction activities.

Free cash flow generated in the project companies is transferred to Scatec Solar as contributions and/or dividends on a semi-annual basis in accordance with the financing agreements. First distribution typically occurs after 12-18 months of plant operation.

In November 2017 Scatec Solar successfully completed a NOK 750 million senior unsecured green bond issue with maturity in November 2021. The bonds carry an interest of 3 month NIBOR + 4.75% and was listed on the Oslo Stock Exchange 6 April 2018 with ticker SSO02 G.

The proceeds from the bond issue was used for a full redemption of the NOK 500 million senior unsecured green bond issued in November 2015 with maturity in November 2018 and will be used for financing of eligible activities as defined in the Scatec Solar green bond framework. The NOK 500 million bond carried an interest of 3 month NIBOR + 6.50%.

In addition to the corporate bond, Scatec Solar ASA has a USD 60 million revolving credit facility with Nordea Bank and ABN Amro with maturity in March 2021 and a USD 5 million overdraft facility with Nordea Bank made available on a multicurrency top account in a group account system.