Scatec Solar raises US$ 500m to pay down SN Power offer, reinforce growth resources funds

• Scatec Solar has actually elevated more than US$ 500 million in an exclusive placement simply days after it announced the US$ 1 billion procurement of hydropower firm SN Power.

The Norwegian independent power producer (IPP) verified the other day its intent to perform an exclusive placement of shares for both brand-new and also present financiers, raising profits to, a minimum of in part, cover a few of the transaction costs.

Scatec Solar introduced last week that it had actually struck an offer to get hydropower designer SN Power for US$ 1.1 billion, verifying its intent to become a more versatile sustainable IPP while also lauding the potential to create floating solar on hydropower reservoirs.

In a statement issued today (21 October), Scatec Solar confirmed that it had allocated greater than 20.6 million shares at a membership price of NOK230 (US$ 25) per share, increasing gross profits of around NOK4,750 million (US$ 514 million).

An additional positioning of greater than 2 million shares is being looked at, based on shareholder approval.

Web earnings from the placement-- which are still to be identified owing to numerous authorization procedures-- will certainly be utilized to re-finance around US$ 300 numerous procurement facilities given by BNP Paribas, DNB Bank, Nordea Bank, filial i Norge and Swedbank, utilized to acquire SN Power.

Those facilities total US$ 700 million, with Scatec set to part pay for that line of debt.

Staying earnings from the placement will be used as growth capital and also to spend for basic company functions, the firm stated.

The positioning comes simply over a year after Scatec Solar raised greater than US$ 140 million with a comparable offering, as well as less than a year after energy gigantic Equinor boosted its risk in the IPP.

It also take advantage of an expanding pattern of solar companies from throughout the worth chain using economic markets for growth capital. Tracker companies have been especially busy of late with Arctech, Soltec as well as Array Technologies all launching IPOs, while this year has actually also seen offerings introduced from the likes of Daqo and GoodWe, amongst other manufacturers.