Note 32 Subsequent events
Adjusting subsequent events
No adjusting events have occurred after the balance sheet date.
Non-adjusting subsequent event
In line with the terms adopted by the Annual General Meeting of Scatec ASA in 2023, the Board of Directors continue the share-based
incentive programme for leading employees of the company, following the same principles as previous years. On January 3, 2024, a
total of 1,515,885 share options were granted to leading employees. Each share option gives the right to subscribe for and be allotted
one share in Scatec ASA. The strike price of the options is set to NOK 79.47 per share based on the volume weighted average share
price over the ten last trading days preceding the grant date of 3 January 2024. The options will lapse if not exercised by 1 January
2028. The option grant is divided into three tranches whereby 1/3 vests each year over three years, with the first tranche vesting 1
January 2025. The current grant is the second of three contemplated annual grants of share options in accordance with Scatec\u2019s share-
based incentive programme.
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On January 25, 2024, Scatec ASA agreed refinancing terms with DNB, Nordea and Swedbank for its USD 150 million green term loan,
with USD 135 million outstanding at the end of the fourth quarter
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2023. The new green term loan will be amortised through semi-
annual repayments of USD 7.5 million with final maturity in the fourth quarter
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2027.
On January 31, 2024, Scatec ASA announced the issuance of a NOK 1,750 million 4-year senior unsecured bond with a coupon of 3
months NIBOR + 4.25% p.a. with quarterly interest payments. DNB Markets, Nordea and SpareBank 1 Markets acted as Joint Lead
Managers in connection with the placement of the new bond issue. An application was made for the bonds to be listed on Oslo Stock
Exchange. On February 1, 2024, Scatec ASA announced buy-back
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of EUR 136 million of outstanding bonds with ticker \u201cSCATC03
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ESG\u201d
(ISIN NO0010931181) which will be cancelled subsequently. Following the transaction, the total nominal outstanding amount is EUR 114
million. The remaining proceeds from the NOK 1,750 million bond issue after the buy-back will be applied towards eligible activities as
set out in the Green Financing Framework, including additional repayment of corporate debt.
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Reference is made to previous communication around changes to the PPA
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in Honduras. In May 2022, a new Energy law came into
force as introduced by the new Government of Honduras. Per January 31, 2024, a PPA
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amendment agreement was signed between
Scatec\u2019s operating entities in Honduras and the offtaker ENEE. The key changes to the PPA
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include a lower tariff, extension of the PPA
with five more years and a compensation amount to be paid by the off taker to Scatec\u2019s operating entities. In total, the amendments to
the PPA
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in combination with the compensation amount are not expected to have a material adverse effect of the financials of the
projects.
On March 6, 2024, the central bank in Egypt announced a full free floating of the local currency, Egyptian Pound
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(EGP), and the local
currency devaluated against USD. Scatec\u2019s
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Benban plants in Egypt are operating under a 25-year Power Purchase Agreement with the
Egyptian Electricity Transmission Company,
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S.A.E, which started operations in 2019. The tariff in the Power Purchase Agreement is
denominated in USD but paid in EGP.
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30% of the production volume is invoiced in EGP at a fixed rate to USD of 8.88, while 70% of the
revenues are invoiced at the official EGP/USD spot rate for the relevant period. Due to devaluations of the EGP since the operations
commenced, the fixed-rate part of the revenues constituted approximately NOK 30 million in 2023 representing 10% of Scatec\u2019s total
proportionate power production revenues in Egypt. This part of the revenues is exposed to further devaluation of the EGP.
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The non-
recourse debt is dominated in USD and not impacted by the devaluation, while Scatec\u2019s cash balances in EGP is negatively impacted by
a devaluation. The change of the central bank\u2019s strategy in Egypt is expected to ease the convertibility of EGP to USD. Please refer to
Note 15 Cash and cash equivalent for information on cash balances in Egypt at year-end 2023.