DC Advisory advises Stockholm Exergi and its shareholders on its SEK 13bn investment and debt financing of its BECCS facility

Background

• Stockholm Exergi is the core heating and cooling infrastructure provider in Stockholm, Sweden, and one of the largest district heating operators in the Nordics
• Stockholm Exergi is at the forefront of the energy transition, using sustainable and resource-efficient solutions to ensure that more than 800,000 Stockholmers have access to heating, electricity, cooling and waste services 
• Stockholm Exergi will build and operate one of Europe’s largest facilities for storage of biogenic carbon dioxide (BECCS), capable of removing c.800,000 tonnes of CO₂ annually
• BECCS will help Sweden and the EU to reach their long-term climate goals. Permanent removals are a vital tool for counteracting emissions that are unavoidable or very difficult to eliminate. They are an essential part of achieving climate targets and net-zero emissions

Process

• DC Advisory was appointed as a joint financial advisor with ICECAPITAL by Stockholm Exergi to assist the company and its shareholders on its investment in BECCS and the financing of its BECCS project
• DC Advisory has supported Stockholm Exergi in a comprehensive financing process which included assisting the company in its credit rating process
• DC Advisory supported Stockholm Exergi with the process, providing financial modelling, and assisting them with the due diligence process, the preparation of marketing materials, lender outreach and documentation negotiation

Outcome

• DC Advisory successfully assisted Stockholm Exergi and its shareholders in reaching its Financial Investment Decision for its BECCS project, including the coordination and raising of a group financing through a mix of bank and supranational loans
• This transaction represents another landmark financing for DC Advisory’s Infrastructure team, expanding its expertise in the energy transition space and establishing its position in the emerging carbon removal sector