- The first project by Scatec is to develop a 35 MW solar and 20 MWh battery project in Chad.
- The loan includes a $65 million guarantee facility to support the payment obligations of Release’s customers.
Scatec (Release) signed a $100 million loan agreement with the World Bank’s International Finance Corporation (IFC) to replace diesel and expand electrification in Africa. The agreement is part of a more extensive partnership to provide African utilities with simpler, more affordable, and cleaner power. This deal includes a $65 million guarantee facility to support the payment obligations of Release’s customers.
The IFC loan will provide funding on a portfolio level for Release’s further development and installation of assets to be leased to African utilities. Release operates on a unique leasing model, providing flexible short- or long-term contracts for the mining and utilities market, primarily in Africa, based on modular, movable and redeployable equipment.
The purpose of the guarantee facility is to guarantee payments to Release from the counterparties leasing the solar and battery equipment. The structure provides risk mitigation for Release while allowing African utilities and governments to secure affordable renewable energy from solar and batteries without the financial commitment required for conventional infrastructure projects. The partnership with IFC will thereby represent a significant catalyst for further growth of the Release platform.
The first project where the combined project loan and guarantee structure will be applied is for a 35 MW solar and 20 MWh battery project in N’djamena in Chad, where a lease contract has already been signed. Release’s existing and operating projects in Northern Cameroon, 36 MW of solar PV and 20 MWh of batteries, will also form part of the portfolio financing. Furthermore, discussions on extending these projects’ capacity are ongoing with the utility.