Benefit 36 million! Scatec refinances solar power project in South Africa
Benefit 36 million! Scatec refinances solar power project in South Africa
Scatec has partnered with existing lenders to finance non-recourse debt financing for the Kalkburt, Dreunberg and Linde solar power plants in South Africa.
Scatec's share of proceeds from the refinancing, based on its 45 percent ownership of the power plant, is ZAR 540 million ($36 million).
The main amendments include increasing the amount of debt, lowering profits, increasing the maturity, and releasing cash from the debt reserve account, which means less impact on the power plant's expected future dividends.
The pursuit of refinancing opportunities is part of Scatec's strategy of ongoing operational and financial improvement to optimize project returns and cash flow.
The refinancing will further benefit the South African authorities through a 50:50 profit distribution between the power plant shareholders and the authorities, according to a refinancing agreement issued by the Ministry of Mineral Resources and Energy.
Mikkel Tørud, Chief Financial Officer, said: “The refinancing of South African power plants demonstrates the potential for our operating portfolio to finance and create value when local financial markets become more mature. We are very pleased with the financing terms and NPV of these projects. be improved while contributing to society through profit-sharing mechanisms.”
