Scatec Solar ASA:Update on Scatec Solar's South-African portfolio
Oslo, 1 November 2018: Final closing of the transaction announced 30 August 2018 where Scatec Solar increases its ownership share in the solar plants Kalkbult, Linde and Dreunberg in South Africa from 39% to 45%, has been completed. The three plants have a total capacity of 190 MW and the increased ownership further strengthens the company's position in the South African market.
Scatec Solar is currently ramping up construction of three new solar plants in South Africa with a total capacity of 258 MW. The six solar power plants are expected to generate a combined 1,000 GWh of power annually that are sold under 20-year power purchase agreements.
Furthermore, Scatec Solar ASA has secured guarantees with MIGA (Multilateral Investment Guarantees), a member of the World Bank Group, covering its equity investments in the six South African solar power plants. The guarantees cover 90 percent of investments by Scatec Solar for up to 15 years against the risks of Breach of Contract and Transfer Restrictions and Convertibility.
"These MIGA guarantees are a cost-efficient way of mitigating risk in an important part of our asset portfolio. We are working with multilateral finance institutions across emerging markets and with these agreements we are again demonstrating how strong partnerships are improving the robustness of our long-term investments", says Raymond Carlsen, CEO of Scatec Solar.
MIGA was created in 1988 as a member of the World Bank Group to promote foreign direct investment in emerging economies by helping mitigate the risks of restrictions on currency conversion and transfer, breach of contract by governments, expropriation, and war & civil disturbance; and offering credit enhancement to private investors and lenders. Over the last three decades, MIGA has directly supported over $50 billion in investments for over 845 projects in 111 developing countries.
For further information, please contact:
Mr. Mikkel Tørud, CFO, tel: +47 976 99 144
Ingrid Aarsnes, Communication & IR, tel: +47 950 38 364
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 1,000 MW. The company is producing electricity from 357 MW of solar power plants in the Czech Republic, South Africa, Rwanda, Honduras and Jordan and has 1,057 MW under construction.
With an established global presence and a significant project pipeline, the company is targeting a capacity of 3.5 GW in operation and under construction by end of 2021. 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.
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.