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. 

Islandsbanki Corporate Finance has been PCC SE’s advisor on the domestic financing for the project at


The boards of Bakkastakkur slhf. and PCC SE are pleased to reach this important milestone for the project. It will include the largest project financing with the participation of a foreign bank in Iceland
for a long while. The undertaking will be elementary in inducing employment in Iceland which will
directly employ around 120 workers. The investment is well suited for the pension funds as the payback is in foreign currency over a long term and diversifies risks associated with their asset portfolios.

Summa Asset Management has advised Bakkastakkur and its owners on the investment.

About PCC:

PCC is a multinational group of companies controlled by the German industry holding PCC SE based in
Duisburg. PCC currently employs more than 2,800 staff at 37 sites in 16 countries. Consolidated
turnover from the group's three business segments, i.e. Chemicals, Energy and Logistics, amounted to
approximately € 625 million in 2013.

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