-to Increase Financial Flexibility, Reduce Funding Cost and Support Growth
-the Board Proposes to Pay 2019 Dividend at a Later Stage, When Market Conditions Have Normalised.
PVTIME – Scatec Solar has signed new and expanded credit facilities with a bank consortium consisting of BNP Paribas, Nordea Bank and Swedbank. Scatec Solar has refinanced its current Revolving Credit Facility (RCF) and established a new USD 90 million ESG linked RCF with a 3-year tenor. The Company has furthermore secured an additional USD 75 million bank facility with tenor up to 18 months. Average interest rate margin for the two bank facilities is 280 basis points compared to 325 basis points for the RCF which has now been replaced.
“We are very pleased to establish these expanded credit facilities with our relationship banks at attractive terms. This increases our financial flexibility, reduces our funding cost and enables us to continue to pursue attractive project opportunities in the renewable markets”, says Raymond Carlsen, CEO of Scatec Solar.
Reference is made to the stock exchange release from 25 March 2020: Scatec Solar has to date not experienced any impact of COVID-19 on operating solar power plants. Travel constraints and local regulations have started to impact construction and commissioning of some of the new solar plants. It is, however, too early to predict what effects this will have on completion dates.
On 24 January 2020, the Board of Directors announced its intention to propose a dividend of NOK 1.05 per share to the Annual General Meeting. Since then, capital markets have been severely weakened. Therefore, in order to maintain the Company’s financial flexibility, the Board of Directors has resolved to seek authorization from the Annual General Meeting to pay a dividend of up to NOK 1.05 per share at a later stage, when the conditions in the capital markets have improved.
Scatec Solar’s 2019 Annual Report, Sustainability Report and Notice of the Annual General Meeting to be held 28 April 2020, will be published on 27 March 2020.