Oslo, Norway-based provider of renewable energy solutions, Scatec, closed the previously announced USD 102 million (NOK 1.1 billion) transaction. The round took place on October 27, 2023. Climate Fund Managers (“CFM”) led the financing for the company. As a part of the deal, CFM contributes USD 55 million in equity for a 32% stake in Release. Meanwhile, Scatec also retains the majority shareholding of 68%. In addition, CFM offers shareholder loans totalling USD 47 million, part of which will be on concessional terms.
Rand Merchant Bank (“RMB”), a division of First Rand Bank Limited, served as the sole financial advisor to Scatec on the transaction.
Purpose of financing for Scatec
With the latest financing, the company seeks to further accelerate its growth ambitions as a separate platform called “Release.”
What the company’s official has to add
Scatec CEO Terje Pilskog, who is also the Chair of Release, said, “We welcome Climate Fund Managers as a strategic partner to fuel the solid growth journey of the Release platform. With this collaboration, we are not only raising funds; we are sharing the future of renewable energy solutions. The release offers a unique solution in a rapidly growing market segment that requires a different business model than Scatec’s larger-scale project business. We are excited to reach this key strategic milestone for Release. It is testimony to Release’s unique business model and Scatec’s ability to attract top climate-oriented fund managers on a mission to invest in value accretive projects in emerging economies.”
What the lead investor have to comment
Climate Fund Manager Darron Johnson, Head of Africa Investments, further said, “Our blended finance model facilitated the integration of impact finance into the deal structure, which Release will be able to leverage to improve its cost structure for its battery and grid connection solutions, allowing Release to offer even more competitive pricing and better value to its clients. We are delighted to support the Release team as they roll out their critical climate technology across Africa, helping significantly reduce the emissions of the mining and utility sectors.”
About Scatec
Alf Bjorseth launched the company. Scatec ASA launched Release in 2019 to offer a flexible and mobile leasing solution of pre-assembled and modular solar and battery equipment. It represents an innovative approach to distributed generation solar PV and Battery Energy Storage Systems (BESS) for projects beginning from 5MWp blocks, matching a need for delivering simple and on-demand renewable energy solutions.
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