Financing strategy
Scatec’s financing strategy supports disciplined growth through a balanced mix of funding sources. We combine recourse debt at the group level with non-recourse project financing in SPVs, complemented by equity bridge loans to temporarily fund equity during construction. This approach provides flexibility, manages risk, and optimises capital allocation across the portfolio.
Corporate debt
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Scatec’s corporate debt is used to support group-level financing needs and provide flexibility to fund development, investments and acquisitions. It is structured as recourse financing at the group level, enabling efficient capital allocation across the portfolio. Scatec is currently reducing corporate debt, reflecting a disciplined approach to deleveraging and maintaining a strong and resilient balance sheet.
Project debt
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Scatec’s non-recourse debt is raised at the project level within SPVs and is serviced by the cash flows of the individual assets. This structure ensures that the project debt has no recourse to the parent company while enabling efficient, long-term financing tailored to each project. Non-recourse debt remains a core component of Scatec’s capital structure, supporting scalable profitable growth with disciplined risk management.
Equity and bridge loans
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Scatec invites equity partners to the projects, while retaining financial and operational control. We also use short-term equity bridge loans (EBLs) in selected projects to bridge equity commitments during construction, until partners are onboarded or asset rotations are completed. This allows Scatec to optimise the capital structure, while supporting timely project execution.
Corporate financing
Carrying values
Maturities
| Debt | Maturity |
|---|---|
| SCATC 04 | Q1 2027 |
| SCATC 05 | Q1 2028 |
| SCATC 06 | Q1 2029 |
| USD 150 million Green Term Loan | Q4 2027 |
| Vendor financing (Norfund)* | Q1 2028 |
*As part of the acquisition of SN Power, Norfund offered a USD 200 million Vendor note with Maturity in Q1 2028. This note is deeply subordinated and will not count in the debt covenant calculations. Scatec ASA has an additional USD 5 million overdraft facility with Nordea Bank made available on a multicurrency top account in the group account cash pool.
Debt on project level:
The power plants are structured in project companies (single purpose vehicles) and financed with equity and non-recourse project finance debt. This structure offers isolation of operational and financial risks related to each individual project, and limits Scatec’s exposure to the equity invested and retained in the respective project companies. A large share of the funding of Scatec’s equity investments in the solar project companies is generated through Scatec’s Development & Construction activities. Free cash flow generated in the project companies is transferred to Scatec as contributions and/or dividends on a semi-annual basis in accordance with the financing agreements. First distribution typically occurs after 12-18 months of plant operation.