Scatec Green Bond Egypt

Location:

Egypt

Project number:

52879

Business sector:

Energy

Notice type:

Private

Environmental category:

B

Approval date:

23 Feb 2022

Status:

Signed

PSD disclosed:

13 Jan 2022

Project Description

An investment in a green bond issuance of up to USD 340 million (the "Bond"). The Bank's participation will consist of up to USD 100m in the form of a direct subscription in the Bond, and the provision of up to USD 30m stand-by liquidity facility for the benefit of the participating private institutional investors. The Bond will obtain the verified certification from the Climate Bond Initiative (CBI) and will be the first private green renewables-backed bond issued in Egypt.

Project Objectives

The Bond proceeds will support a portfolio of six operational solar power plants located in Benban, Egypt (the "Projects").

Transition Impact

ETI score: 68

The Transition Impact arises from the Green and Inclusive qualities:

Green - The proposed investment is in an independently certified Green Bond.

Inclusive - The Sponsor will participate in the inclusion programme aimed at increasing access to skills and economic opportunities for young people of the rural areas near Benban in Egypt by introducing a certified training programme for agribusiness entrepreneurs. In addition it will promote workforce diversity by enhancing the role of women in the traditionally male-dominated local economy.

Client Information

SCATEC SOLAR ASA

The Projects are ultimately owned 51% by Scatec ASA, 25% by Africa 50 and 24% Norfund.

Scatec ASA is a leading renewable power producer, headquartered in Oslo, Norway and listed on the Oslo Stock Exchange. Scatec ASA develops, builds, owns and operates solar, wind and hydro power plants and storage solutions, and has more than 3.5 GW in operation and under construction on four continents.

Africa 50 is an investment vehicle established to help bridge Africa's infrastructure funding gap by facilitating project development, mobilizing public and private sector finance, and investing in infrastructure on the continent.

Norfund is the Norwegian Investment Fund for developing countries, owned and funded by the Norwegian Government. Its role is to assist in building sustainable businesses and industries in developing countries by providing equity capital and other risk capital.

EBRD Finance Summary

Up to USD 100,000,000 for the Bank's direct participation in the Bond

Up to USD 30,000,000 for the unfunded liquidity support standby facility

Total Project Cost

USD 340,000,000.00

Up to USD 340,000,000

Additionality

The Bank's additionality is mainly derived from: (i) the Bank is offering financing on reasonable terms and conditions, that is expected to close the funding gap and allows carrying out a successful fund-raising process, (ii) supporting the project's access to the international capital markets in the context of uncertain market conditions by offering an innovative financing structure and providing comfort to international investors, and (iii) the conditionalities obtained by the Bank to enhance inclusion and environmental standards.

Environmental and Social Summary

This project has been Categorised B in line with EBRD's 2019 Environmental & Social Policy. This is a Green Bond capital markets transaction and ESDD will been undertaken by review of publicly available information, the independent Green Bond Principles verification report, any further disclosures made by the provided by the Company, and existing non-MNPI information held by the Bank. The project is high-medium risk due to the use of Bond proceeds for further renewable energy development. The Sponsor and the operational assets included in the transaction are well known to the Bank and the existing assets were developed and implemented in accordance with the Bank's PRs. Furthermore, the Sponsor is actively engaged in the supply chain risk discussions. An ESAP is unlikely to be required however EBRD will require the Sponsor's commitments that all future SPP projects be developed in line with the PRs and EBRD's strategy on management of supply chain risks. This section of the PSD will be updated post-participation.

Technical Cooperation and Grant Financing

The Bank will provide a TC assignment on a cost sharing basis with Scatec to support the inclusion programme, including introducing a certified training programme for agribusiness entrepreneurs and enhancing the role of women in the local economy.

Company Contact Information

Claus-Henning Schmidt
Claus-Henning.Schmidt@scatec.com
+ 47 90 11 09 29
http://www.scatec.com
Askekroken 11, 0277 Oslo, Norway

PSD last updated

13 Jan 2022

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.

 

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