Scatec reaches financial close and starts construction of 130 MW solar power plant in Colombia

Scatec's $121 million financial close for its 130 MW solar PV plant in Colombia's Cesar Department advances its strategy for renewable generation in emerging markets. The project, with a total plant cost of $150 million, sees Scatec developing, building, owning, and operating the asset, consistent with its focus on accelerating access to reliable clean energy. Debt financing from IDB, a multilateral development bank, supports the project's capital requirements for construction and operation. This deal structure enables Scatec to execute its emerging market strategy while distributing project risk among diverse financial institutions. The commercial logic for Scatec involves leveraging established financial partnerships to deliver large-scale solar capacity in Colombia. Norfund's involvement as a partner aligns with its mandate to invest in renewable energy in developing countries, aiming to create jobs and stimulate economic growth. The lending consortium includes Bancolombia, a full-service financial institution, and Financiera de Desarrollo Nacional (FDN), a Colombian development bank managing a loan portfolio exceeding COP 10 trillion (approximately USD 2.5 billion) for critical infrastructure. This combination of local and international financial institutions provides robust funding for the 130 MW solar development. BTG Pactual Comercializadora de Energía, primarily a Brazilian power trader, secures the offtake, demonstrating its expanding reach in Latin American energy markets beyond Brazil. This transaction attracts specialized developers and significant financial backing to Colombia's solar sector.