Scatec issues $334.5m green bond to refinance Egypt solar projects

5 May 2022
Scatec issues $334.5m green bond to refinance Egypt solar projects

Norway’s Scatec and its partners have issued a $334.5m green bond to refinance six solar parks with a combined total capacity of 380MW in Egypt

Norway’s Scatec and its partners have issued a $334.5m green bond to refinance six solar parks with a combined total capacity of 380MW in Egypt.

Through the transaction, Scatec has refinanced the non-recourse project debt for six photovoltaic (PV) solar farms within the 1,650MW Benban solar complex in the Aswan governorate.

The non-recourse green bonds, maturing in 19 years, were distributed to a tie-up of development finance institutions, including the European Bank for Reconstruction and Development (EBRD), US International Development Finance Corporation (DFC), the German investment corporation DEG and Dutch development bank FMO.

The bond sale, which was arranged by Mitsubishi UFJ Financial Group, will provide the company with increased leverage, extended tenor and reduced interest costs to provide the company and partners for the 6 PV projects to benefit from higher cash distribution from the assets.

Earlier in March, Egypt signed a $5bn memorandum of understanding (MoU) with Scatec to develop a green hydrogen and green ammonia plant in the Suez Canal area.

The green hydrogen and ammonia facility will be located in the SCZONE in Ain Sokhna Industrial Zone and will be powered by renewable energy plants to be built in close proximity on an area of land allocated by NREA. The plant will be designed so it can be expanded up to 3 million tonnes a year in the future.

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