Scatec Solar Establishes Credit Facilities of USD 165 Million

-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.

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