STORA ENSO OYJ INVESTOR NEWS 11 July 2024 at 14:00 EET
HELSINKI, July 11, 2024 /PRNewswire/ -- Stora Enso has signed a new EUR 435 million bilateral loan with the European Investment Bank (EIB) to support the its growth in renewable, fiber-based consumer packaging board.
Stora Enso's EUR 1 billion investment in its Oulu mill in Finland is being financed, in part, by a new long-term bilateral loan. The loan features an amortising structure, with the final repayment anticipated in 2036, effectively lengthening the Group's debt maturity profile. The mill, which is expected to begin operations with a novel, converted consumer board production line in the first half of 2025, will be one of the most modern and cost-efficient production sites for packaging materials in Europe.
"The investment in Oulu supports our growth strategy in renewable, circular packaging by providing new volume for the growing packaging segment. The wood fiber is sourced from sustainably managed forests in the Nordics, and the boards are designed to replace plastics in food and personal care packaging," says Hannu Kasurinen, Executive Vice President, Packaging Materials Division.
"This new loan with EIB will not only provide us with financial flexibility, but it also underscores our commitment to sustainable, profitable growth. Securing access to long-term capital from a variety of sources is a pivotal element of our strategy, as it enables us to invest in new growth opportunities," says Kaarlo Höysniemi, SVP Group Treasury.
Read more about Stora Enso's financing activities at storaenso.com.
About the EIB
The European Investment Bank (EIB) is a long-term lending institution of the European Union, owned by its Member States. It finances sound investments that contribute to EU policy objectives.The EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality.
For further information, please contact:
Kaarlo Höysniemi
SVP Group Treasury
tel. +358 400 251 179
Investor enquiries:
Anna-Lena Åström
SVP Investor Relations
tel. +46 70 210 7691
Part of the global bioeconomy, Stora Enso is a leading provider of renewable products in packaging, biomaterials and wooden construction, and one of the largest private forest owners in the world. We create value with our low-carbon and recyclable fiber-based products, through which we support our customers in meeting the demand for renewable sustainable products. Stora Enso has approximately 20,000 employees and our sales in 2023 were EUR 9.4 billion. Stora Enso shares are listed on Nasdaq Helsinki Oy (STEAV, STERV) and Nasdaq Stockholm AB (STE A, STE R). In addition, the shares are traded in OTC Markets (OTCQX) in the USA as ADRs and ordinary shares (SEOAY, SEOFF, SEOJF). storaenso.com/investors
STORA ENSO OYJ
For further information, please contact:
Kaarlo Höysniemi
SVP Group Treasury
tel. +358 400 251 179
Investor enquiries:
Anna-Lena Åström
SVP Investor Relations
tel. +46 70 210 7691
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https://news.cision.com/stora-enso-oyj/r/stora-enso-signs-eur-435-million-funding-agreement-with-european-investment-bank,c4013969
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