DJ Rand Merchant Bank (RMB) advises Scatec on fundraising for roll-out of innovative solar solution across Africa, Release Solar
Rand Merchant Bank (RMB)
Rand Merchant Bank (RMB) advises Scatec on fundraising for roll-out of innovative solar solution across Africa, Release
Solar
19-Jul-2023 / 18:30 CET/CEST
The issuer is solely responsible for the content of this announcement.
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MEDIA RELEASE
19 JULY 2023
For immediate release
Rand Merchant Bank (RMB) advises Scatec on fundraising for roll-out of innovative solar solution across Africa, Release
Solar
Scatec established Release in 2019 with the aim of offering a creative solar alternative to challenge the traditional
approach to providing power in emerging markets
Rand Merchant Bank ("RMB") (www.RMB.co.za) is proud to be the sole financial advisor to Scatec ASA ("Scatec"), a
leading global renewable energy provider, on a USUSD102 million investment from Climate Fund Managers ("CFM") in Release
by Scatec ("Release"). Release provides an innovative containerised solar and battery solution to address the rapidly
growing energy demand and local power challenges across Africa.
Scatec established Release in 2019 with the aim of offering a creative solar alternative to challenge the traditional
approach to providing power in emerging markets. Release offers flexible leasing agreements of pre-assembled modular
solar PV and battery equipment. The funding from this transaction will be used to scale its operations and provide
power to utilities and mining companies across Africa, reducing energy costs, strengthening energy security and helping
decarbonize the environment by replacing traditional diesel and heavy fuel oil-fired generation solutions.
CFM is a leading climate-centric blended finance fund manager. It designs and deploys cutting-edge climate finance
funds at scale and at pace, working in partnership to co-develop, construct and own sustainable infrastructure
solutions that deliver low-emission, climate-resilient growth. Established in 2015, CFM is a joint venture between the
Dutch development bank, FMO, and Sanlam InfraWorks, part of the Sanlam Group of South Africa. The firm invests across
Africa, Asia, and Latin America and is headquartered in The Netherlands.
"We are very excited to have Climate Fund Managers join us as a partner to accelerate the significant growth potential
of the Release platform. Scatec is establishing a strong partnership and has raised external financing through a value
accretive transaction to fund Release's growth ambitions. Release is offering a unique renewable energy solution in a
rapidly growing market segment that requires a different business model than Scatec's larger scale project business,"
says Scatec CEO, Terje Pilskog, who is also the Chair of Release.
"We are excited to have a partner as strong as CFM on board and one who shares our view of the potential and
aspirations for our business concept. The new shareholder funding will be supplemented by Release through additional
debt and guarantee facilities that are currently in advanced negotiations. This gives us the financial foundation we
need to meet the strong demand for our flexible leasing model, for easily deployable renewable power plants," says
Release CEO, Hans Olav Kvalvaag.
"It is increasingly clear that closing Africa's energy gap will require innovative solutions that disrupt the standard
approach to the provision of power. Release's unique offering will contribute positively to Africa's future energy mix
by rapidly deploying power to remote areas where the only other viable energy alternative is diesel and heavy fuel oil.
At RMB, we remain committed to playing our part in Africa's energy transition, by supporting companies unlocking
positive social and environmental outcomes. In this light we are incredibly proud to have advised Scatec on this
landmark transaction." said Liz Williamson, Head of Energy Corporate Finance at RMB.
"As one of the leading renewable energy providers in Africa, Scatec is a key client for RMB. We are therefore extremely
proud to have advised Scatec on the capital raise for its Release business. The offering from Release is unique in
Africa, providing modularised off-grid solutions for corporate and utility customers. This successful capital raise
from Climate Fund Managers, a key investor in the green economy globally, will catapult both Release and its critical
offering across the continent, as Africa looks to accelerate its transition to renewable energy." said Daniel Zinman,
Head of Power, Infrastructure Sector Solutions at RMB.
Distributed by APO Group on behalf of Rand Merchant Bank.
For further information at RMB, please contact:
Liz Williamson
Head of Energy Corporate Finance
liz.williamson@rmb.co.uk
Daniel Zinman
Head of Power, Infrastructure Sector Solutions
daniel.zinman@rmb.co.za
About RMB:
Rand Merchant Bank (RMB) is a leading African corporate and investment bank (CIB) and part of the largest financial
services group (by market capitalisation) in Africa - FirstRand Bank Limited (which is wholly owned by FirstRand
Limited). We offer our clients innovative, value-added advisory, funding, trading, corporate banking and principal
investing solutions.
With a presence in 10 African countries, we have a significant footprint on the continent. We also have access to a
network of retail banks, representative offices and branches across Africa, the UK, India and the US.
At RMB we are passionate about solving problems for our clients by asking the hard questions. We challenge accepted
thinking. We analyse and seek solutions beyond the obvious. We are innovative in our thinking and turn challenges into
opportunities, while delivering on Traditional values. Innovative ideas.
Our ability to think differently, our collaborative spirit, our client-centric solutions and our belief that great
minds don't always have to think alike, is what sets us apart.
For more information please visit: www.RMB.co.za
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The issuer is solely responsible for the content of this announcement.
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1683903 19-Jul-2023
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July 19, 2023 12:30 ET (16:30 GMT)
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