The long-term financing solution provides a flexible platform to fund the ongoing expansion of Svartsengi and allows the company to expand the financing when required to support the development of new geothermal and hydropower projects. The multi-currency infrastructure financing is provided by Icelandic banks, European banks, and US Private Placement lenders.
This landmark transaction extends HS Orka’s Green Financing Framework and provides further momentum for the company to expand its geothermal and hydropower capacity, strengthening HS Orka’s position as a pure play renewable energy producer with a commitment to zero-carbon objectives.
Successful transaction despite ongoing seismic activity
Tómas Már Sigurðsson, Chief Executive Officer, HS Orka, commented: “We are delighted to close this transformational financing, highlighting the attraction of our business and demonstrating the strength of our growth pipeline.
Despite the ongoing seismic activity in Iceland, the long-term financing package brings about a committed pool of new lenders and marks HS Orka as one of the first privately owned Icelandic company to successfully tap the US Private Placement Market.
The successful transaction builds upon our Green Financing Framework and reaffirms the excellent progress we have made on our strategic journey to build our business for long-term success. The company now looks forward to delivering the Svartsengi expansion project to support the ever-growing energy demand in Iceland.”
HS Orka was advised by RBC Capital Markets (Financial Advisor and Sustainability Coordinator), as well as Latham & Watkins and Juris (Legal Advisors). Lenders were advised by White & Case.
HS Orka a vital infrastructure company
HS Orka is a privately owned renewable power generator in Iceland with licences for electrical power production through geothermal and hydropower plants. The Company is the third largest power producer in Iceland representing around 9% of the total domestic power production for distribution nationwide, demonstrating the critical importance of the infrastructure in Svartsengi and Reykjanes as a part of the nation´s energy security.
HS Orka is also an essential utility company in Iceland supplying district heating and water for distribution to nearby communities of more than 30 thousand inhabitants or close to 10% of the country´s population. HS Orka also produces geothermal by‐products, such as brine and thermal energy, which it delivers and sells, as well as electricity and hot & cold water to companies in the Resource Park, located in the vicinity of its geothermal power plants.
