Deal Announcement

DC Advisory advised Ancala Partners and Jarðvarmi on the refinancing of HS Orka

28 Feb 2020


  • HS Orka is the leading independent power generator in Iceland, owning and operating over 174MW of geothermal power production capacity, in addition to a recently commissioned 10MW hydro plant
  • The company similarly engages in district heating, hot and fresh water, geothermal reservoir management software, as well as geothermal by-products operations
  • HS Orka is currently owned 50% by Ancala Partners and 50% by Jarðvarmi, a dedicated investment vehicle owned by Iceland’s largest pension funds for the development of HS Orka
  • HS Orka operates a well-invested and environmentally sustainable asset base, and benefits from a strong pipeline of expansion opportunities


  • DC Advisory (DC) was engaged by HS Orka to explore options around its existing debt with a local Icelandic bank, as well as to provide debt advice in relation to the structuring of a sustainable financing platform, enabling the company to deliver its business plan
  • As part of the process, the DC team, led by Sergio Ronga and Jakob Folkesson, delivered a number of detailed work streams, including:
    • Key marketing materials (such as management presentations, IM and RfPs);
    • Financial modelling and sensitivity analysis;
    • Due diligence;
    • Debt structuring; and
    • Full documentation negotiations
  • The work led by DC enabled the new financing to address a number of key objectives:
    • Raising USD denominated debt to match the company’s currency exposure;
    • Implementing a cost-efficient capital structure through the establishment of a platform, enabling HS Orka lenders (both current and future) to lend under a structured framework;
    • Achieving reduced all-in rates and generous covenants to establish further operational flexibility; and
    • Establishing a significant revolving capex facility to support further investment in generation infrastructure in Iceland


  • DC delivered a successful outcome, assisting the company in raising USD 210 million in financing from a group of leading European commercial lenders under a financing platform structure
  • The refinancing package provides the ability for HS Orka to pursue attractive development projects that is secured by the utility, further de-risking its operations
  • The successful outcome of the transaction is testament to DC’s strength in the infrastructure debt advisory space, and its ability to deliver bespoke financings


Deal Team

Sergio Ronga

Managing Director
United Kingdom