Scatec Bond (MIGA-14952)

Regions
  • Middle East and North Africa
Geographic location where the impacts of the investment may be experienced.
Countries
  • Egypt
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Multilateral Investment Guarantee Agency (MIGA)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Feb 5, 2022
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Virtuo Finance SARL
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Energy
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Guarantee
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 98.30 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Other Related Projects
Primary Source

Original disclosure @ MIGA website

Updated in EWS Nov 5, 2024

Disclosed by Bank Jan 5, 2022

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to bank provided information, the Multilateral Investment Guarantee Agency ("MIGA") a member of the World Bank Group (WBG), issued on May 18, 2022, a guarantee of US$98.3 million covering a tranche of bond issuance by Virtuo Finance, S.A.R.L, as part of the US$334.5 million refinancing plan for six photovoltaic (PV) power plants operating in Benban PV Solar Power Farm, namely Aswan PV Power SAE, Kom Ombo for Renewable Energy SAE, Daraw Solar Power SAE, Upper Egypt Solar Power SAE, Zafarana Solar Power SAE, and Red Sea Solar Power SAE, developed under the Round 2 Solar Feed-in-Tariff Program (FiT Program) in the Arab Republic of Egypt (the Projects). The Projects are currently owned by three sponsors, i.e. Scatec Solar ASA, Africa 50 and Norfund.

MIGA coverage was provided for a period of 19 years against the risks of Breach of Contract, Expropriation, Transfer Restriction and Inconvertibility, and War & Civil Disturbance. The bond tranche that is covered by MGA also benefits from a Liquidity Support Facility provided by the European Bank for Reconstruction and Development (EBRD).

The six project enterprises are currently operational and are located in the Benban Solar Park in the Aswan Governorate, in the Upper Egypt Region. Previously, MIGA issued guarantees amounting US$ 76.43 million on March 2020 to Scatec Solar ASA, and on June 2020 to KLP Norfund Investments AS, covering 90% of their equity investments in the Projects against the risks of Transfer Restriction and Inconvertibility for up to 15 years.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Africa50 Client Infrastructure
- - - - Norfund Client Finance
- - - - Scatec ASA Client Energy

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

*Contact information not provided at the time of disclosure*

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://www.miga.org/contact/access_to_information 

You can also request general information about MIGA and for information on guarantees by emailing: migainquiry@worldbank.org 

ACCOUNTABILITY MECHANISM OF IFC/MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org 

How it works

How it works