Scatec Refinances Power Plants in South Africa

Oslo, 24 March 2022: Scatec has refinanced the non-recourse debt facilities for the solar power plants Kalkbult, Dreunberg and Linde in South Africa with the existing lenders.

Scatec’s share of proceeds from the refinancing, based on its 45 per cent ownership in the power plants, amounts to ZAR 540 million (USD 36 million).

Key amended terms include increased debt amounts, reduced margins, increased tenors, and release of cash from debt reserve accounts, implying minor impacts to expected future dividends from the power plants.

Pursuing refinancing opportunities is part of Scatec’s strategy for continuous operational and financial improvements to optimise project returns and cash flows.

The refinancing will further benefit the South African authorities through a 50:50 profit split between the shareholders of the power plants and the authorities, in accordance with the Refinancing Protocol issued by the Department of Mineral Resources and Energy.

“The refinancing of our South African power plants demonstrates the funding and value creating potential of our operating portfolio when local financial markets become more mature. We are very pleased to have improved financing terms and net present values for the projects, while contributing to society through profit-sharing mechanisms,” says CFO Mikkel Tørud.