Íslandsbanki Corporate Finance advisor on financing silicon smelter plant
Bakkastakkur slhf. has signed a contract with the German industry holding PCC SE regarding its participation in the financing of a silicon smelter plant at Bakki, Húsavík in the north of Iceland. The shareholders of Bakkastakkur are over 10 pension funds along with Íslandsbanki. The project’s total investment of about 300 million USD, or close to 40 billion ISK, is therewith fully funded. The majority of the project funding is in the form of a loan from a major German bank. Bakkastakkur provides more than a quarter of the investment sum as a combination of debt financing and preferred shares of the project entity PCC BakkiSilicon hf. The funding is contingent upon certain conditions being fulfilled. In particular there are references to the investigation of the EFTA Surveillance Authority into the power purchase agreement with Landsvirkjun and the power transmission agreement with Landsnet.
Summa Asset Management has advised Bakkastakkur and its owners on the investment.