Scatec's $115M Green Bond Signals Confidence in Renewable Energy Expansion

OSLO, NORWAY – November 03, 2025 – Scatec ASA successfully placed a NOK 1,250 million (approximately $115 million USD) senior unsecured green bond, marking a significant step in the company’s strategy to strengthen its financial position and fund its ambitious expansion plans. The issuance, which followed meetings with fixed-income investors, reflects growing confidence in Scatec’s ability to deliver sustainable energy solutions and a robust investor appetite for environmentally responsible investments.

Solid Financial Position Underpins Bond Issuance

Scatec’s decision to tap the green bond market isn’t simply about accessing capital; it’s a testament to the firm’s improving financial health and a clear articulation of its long-term strategy. The company has been actively focused on deleveraging, reducing its corporate debt from NOK 9.2 billion to NOK 6.7 billion in recent quarters. This commitment to strengthening its balance sheet has been well-received by investors, contributing to the successful placement of the bond.

“The company has made a concerted effort to manage its debt levels, and this bond issuance is a natural continuation of that strategy,” said one market observer. “Investors are increasingly focused on companies with solid financial foundations, and Scatec has demonstrated a clear commitment to fiscal responsibility.”

Recent financial results confirm this trend. Scatec has seen substantial growth in proportionate revenues and EBITDA, driven by both new power production and strategic divestments. The company’s focus on integrating solar PV with Battery Energy Storage Systems (BESS) is also resonating with investors seeking exposure to innovative and future-proof energy solutions.

Green Credentials and Sustainable Finance

The green bond designation is a crucial component of Scatec’s financing strategy. The proceeds will be used to refinance existing debt and fund general corporate purposes, all aligned with the company’s comprehensive Green Financing Framework. This framework, which has received a positive Second Party Opinion from S&P Global, ensures that the funds are directed toward eligible green projects, including renewable energy generation, energy efficiency, and clean transportation.

“Investors are increasingly demanding transparency and accountability when it comes to ESG factors,” explained a source familiar with the green bond market. “Scatec’s commitment to a robust Green Financing Framework and independent verification provides investors with confidence that their capital is being used to support genuinely sustainable projects.”

Scatec’s framework aligns with the Green Bond Principles and is underpinned by a strong commitment to sustainability across its entire value chain. This includes ambitious targets to achieve net-zero emissions by 2040 and rigorous supply chain management practices. The company’s focus on renewable energy – specifically solar, wind and hydro – further enhances its appeal to ESG-focused investors.

Expansion in Emerging Markets Fuels Growth

Scatec’s strategic focus on emerging markets is a key driver of its growth and a significant factor in attracting investor interest. The company operates in five continents, developing, building, and operating renewable energy plants in regions with high energy demand and limited access to clean electricity.

The current portfolio includes projects in Africa, Asia, South America, and Europe, demonstrating a diversified geographical footprint. This expansion is not only contributing to economic development in these regions but also creating long-term value for shareholders.

“Emerging markets represent a significant opportunity for renewable energy growth,” said an industry analyst. “Scatec’s early mover advantage and proven track record in these regions position it well to capitalize on this trend.”

The issuance of this bond reinforces Scatec's commitment to expanding its operating capacity, with a target to more than double it to 9 GW by 2030. The company’s ambitious growth plans are supported by a strong project backlog and a pipeline of new opportunities in strategically targeted markets. The company’s financial projections indicate sustained growth in revenue and EBITDA, reinforcing its ability to generate attractive returns for investors.