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RELEASE BY SCATEC RAISES USD 102 MILLION TO ACCELERATE GROWTH AMBITIONS

July 19, 2023 Stock exchange notice

Oslo 19 July 2023: Release by Scatec (“Release”) signed an agreement to raise
USD 102 million (NOK 1 billion) in funding from Climate Fund Managers (“CFM”) to
further accelerate its growth ambitions. Release was established by Scatec ASA
(“Scatec”) in 2019 to offer a flexible leasing solution of pre-assembled and
modular solar and battery equipment for the mining and utilities market.

CFM is a leading climate-centric blended finance fund manager backed by FMO, the
Dutch Development Bank, and Sanlam Infraworks, part of the Sanlam Group of South
Africa. The company invested in Release via its Climate Investor One (CIO) fund;
a blended finance vehicle focused on renewable energy infrastructure in emerging
markets. CFM will contribute USD 55 million in equity for a 32% stake in
Release. Scatec, a renewable energy frontrunner in emerging markets, will retain
the majority shareholding of 68%. CFM will also provide shareholder loans
totalling USD 47 million, part of which will be on concessional terms.

“We are very excited to have Climate Fund Managers join us as a partner to
accelerate the significant growth potential of the Release platform. Scatec is
establishing a strong partnership and has raised external financing through a
value accretive transaction to fund Release’s growth ambitions. Release is
offering a unique renewable energy solution in a rapidly growing market segment
that requires a different business model than Scatec’s larger scale project
business,” says Scatec CEO, Terje Pilskog, who is also the Chair of Release.

“Today’s transaction establishes Release as a strong and independent company
while Scatec remains the main shareholder and offers services to support Release
and drive synergies in the next phase of the company’s development,” adds
Pilskog.

Release is experiencing good traction in the market, particularly towards
African utilities. It has projects in operation and under construction in
Cameroon, South-Africa, Mexico, and South-Sudan with a total capacity of 47 MW
solar PV and 20 MWh of battery storage and has additional contracts for 35 MW
solar PV and 20 MWh of storage in Chad, in addition to maturing its advanced
pipeline. Release intends to replicate its rapid deployment model to address
shortfalls in local grid power supplies throughout the region.

“We are excited to have a partner as strong as CFM on board and one who shares
our view of the potential and aspirations for our business concept. The new
shareholder funding will be supplemented by Release through additional debt and
guarantee facilities that are currently in advanced negotiations. This gives us
the financial foundation we need to meet the strong demand for our flexible
leasing model, for easily deployable renewable power plants,” says Release CEO,
Hans Olav Kvalvaag.

“CFM’s purpose is to help end the climate crisis. We do this by raising and
deploying cutting-edge blended finance funds at scale and at pace. 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,” says CFM CEO, Andrew Johnstone.

After closing of the transaction, Release will be accounted for as a joint
venture investment in the group accounts of Scatec, which will generate an
accounting gain of approximately USD 40 million in the consolidated financials
at closing. There will be no impact on the proportionate financials from the
transaction. Closing of the transaction is expected in the third quarter of
2023, subject to customary conditions precedent.

Rand Merchant Bank (“RMB”), a division of First Rand Bank Limited, acted as the
sole financial advisor to Scatec on the transaction.

For further information, please contact:
For analysts and investors: Andreas Austrell, VP Investor Relations, tel: +47
974 38 686, andreas.austrell@scatec.com
For media: Meera Bhatia, SVP Communications & Government Affairs, tel: +47 468
449 59, meera.bhatia@scatec.com
Aidan Wildschut, Senior Communications and Public Affairs Coordinator, tel: +27
663 94 1407, aidan.wildschut@scatec.com





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