October 6 (Renewables Now) - Scatec Solar ASA (OSL:SSO) and partners have reached financial close for 197 MW of solar projects in Malaysia, raising funds through a green Islamic bond, the Oslo-based company said today.
Scatec Solar teamed up in December 2016 with a consortium, led by Malaysian engineering company Itramas Corp Sdn Bhd, to build the portfolio of three solar projects located in Merchang, Jasin and Gurun. The Norwegian company's involvement came after the local consortium, which also includes MalTechPro and Cam Lite, signed three 21-year power purchase agreements (PPAs) with Malaysian utility Tenaga Nasional Bhd (KLSE:TENAGA). Scatec Solar will provide engineering, procurement and construction (EPC), operation and maintenance (O&M) and asset management services for the projects.
The partners have secured financing for the plants, which will cost about MYR 1.235 billion (USD 291m/EUR 249m), through the issuance of what is described as the world's largest green sustainable and responsible investment (SRI) sukuk of MYR 1 billion. Scatec Solar is making a MYR-251-million investment in the projects through preference shares partly convertible to 49% equity ownership, as well as ordinary preference shares.
Construction is already underway and the plants are expected to be completed within the next few months, the company said.
"This milestone marks a new beginning for Malaysia's renewable energy sector. The projects are envisaged to generate up to 3,000 local jobs and will generate electricity for up to 93,000 households per year," commented Lee Choo Boo, group managing director at Itramas.
(MYR 1 = USD 0.236/EUR 0.202)