Scatec Solar achieves financial close for 197MW solar projects in Malaysia

Financing was through the world's largest green sukuk worth $237m.

Scatec Solar ASA (SSO) and partners have achieved financial close for three solar PV power plants in Malaysia totaling 197MW.

Financing for the plants has been raised through a successful issuance of the world's largest Green SRI Sukuk (Islamic bond) of MYR 1,000 million in nominal value (USD 237 million).

In December 2016, Scatec Solar entered the Malaysian large-scale solar energy market by joining forces with a local ITRAMAS-led consortium that had signed three 21-year Power Purchase Agreements (PPAs) with the country's largest electricity utility, Tenaga Nasional Berhad (TNB).

The partnership covers realization of the three solar plants totaling 197 MW with a total investment of about MYR 1,235 million (USD 293 million). Located in Merchang in the north-east, Jasin in the south and Gurun in the north-west of Peninsular Malaysia, the three power plants cover more than 180 acres each.

Scatec Solar invests MYR 251 million (USD 59 million) through preference shares partly convertible to 49% equity ownership in the projects as well as ordinary preference shares. Once the plants are in full operation they will provide long term stable cash flows. Scatec Solar will be the turn-key EPC provider for the projects and provide Operation & Maintenance as well as Asset Management services to the power plants.

"We are very satisfied to reach this important milestone. Together with our partners, we have again demonstrated our wide-ranging expertise and we are now ready to build the largest solar energy portfolio in South East Asia", says Raymond Carlsen, CEO of Scatec Solar.

Construction of the plants have already started and is expected to be completed within the next few months.