Stora Enso has signed a loan facility agreement with the International Finance Corporation (IFC) to extend the maturity of USD 128 million in syndicated loans under its existing facility with IFC. IFC is a member of the World Bank Group focussed on private sector development in emerging markets. The extension prolongs the maturity by three years to June 2014. The loan will be used to finance Stora Enso’s current and future investments in China.
The participating international commercial banks are Crédit Agricole Corporate & Investment Bank, Handelsbanken, HSBC, Nordea, SEB and The Royal Bank of Scotland. The initial loan facility for China was signed between Stora Enso and IFC in June 2005. The amount was increased to USD 300 million in June 2006, of which USD 128 million is now extended.
In line with its growth markets strategy, Stora Enso is focusing on profitable expansion in China by prioritising local sustainable supplies of fibre and by targeting investments in growth markets and selected product segments.
“We have a long relationship with IFC, which has been our primary strategic financing partner in China. We are pleased to note that investors such as IFC appreciate our sustainability approach. They have also provided important guidance on how to enhance the sustainability of our operations,” says Stora Enso CFO Markus Rauramo.