April 29 (Renewables Now) - The European Bank for Reconstruction and Development (EBRD) has invested up to USD 100 million (EUR 93.7m) in a USD-334.5-million green bond issued by Norwegian renewables developer Scatec ASA (OSL:SCATC).

The lender said on Thursday it will also provide USD 30 million in the form of a credit enhancement facility to institutional investors taking part in the transaction.

Scatec Solar launched the green bond sale to refinance the non-recourse project debt for six photovoltaic (PV) power plants in Egypt. The solar parks, with a combined capacity of 380 MW, are located within the 1,650-GW Benban solar complex in Aswan Governorate.

The non-recourse green bonds, maturing in 19 years, were distributed to a tie-up of development finance institutions. Apart from EBRD, other participants in the offering were the US International Development Finance Corporation (DFC), the Dutch development bank FMO and German Investment Corporation DEG. Private institutional investors also took part in the funding round.

According to EBRD, the transaction was the first private green project bond issuance in Egypt and the Southern and Eastern Mediterranean region.

(USD 1.0 = EUR 0.937)

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