Stora Enso Strengthens Co-operation With IFC in Guangxi, China
February 28 2014 - 2:08AM
STORA ENSO OYJ STOCK EXCHANGE RELEASE 28 FEBRUARY 2014 at 9.00 EET
Stora Enso is strengthening its partnership with International
Finance Corporation (IFC) as part of developing its
state-of-the-art plantation, board and pulp mill project in
Guangxi, China. IFC has agreed to invest in an equity stake of RMB
356 million (EUR 43 million) in the project, representing a 5%
shareholding in the project. Stora Enso will continue to own 83% of
the project, with the remainder owned by Guangxi Forestry Group Co.
Ltd and Beihai Forestry Investment & Development Company Ltd.
In addition, Stora Enso is in the final stage of concluding the
long-term external financing for the first phase development of the
project. The USD 460 million funding package will be provided under
an IFC syndicate loan structure. It consists of a USD 88 million
loan with twelve years tenor from IFC and a USD 372 million loan
with eight years tenor provided by commercial banks through IFC.
The funding package is expected to be obtained at an average
interest rate of LIBOR +2.40%.
IFC has been supporting Stora Enso in Guangxi with a similar
loan structure since 2005, and the long-term funding package is
expected to replace the existing financing.
"We welcome the continued support from IFC. This shows the
quality of the work we are doing in Guangxi," says Mats Nordlander,
Executive Vice President, Stora Enso Renewable Packaging.
Stora Enso's investment project is divided into two phases. The
first phase is to build a board machine to be ready in the
beginning of 2016. The pulp mill will be constructed in the second
phase and started up when the board machine is operational. The
operations will supply customers with renewable material for
products addressing the growing consumer market in China. This
includes food, beverage and confectionary packaging.
A strong sustainability agenda is an integral component of the
IFC engagement. The agenda includes for example livelihood
development, world class environmental standards, and health and
safety issues in the industrial and forestry operations.
Stora Enso employs some 1 100 people in Guangxi, and when
the integrated mill is in operation the number of employees will be
about 2 000.
The investment is pending conclusion of condition precedents as
customary for this type of transaction.
For further information, please contact: Mats
Nordlander, Executive Vice President, Stora Enso Renewable
Packaging, tel: +46 1046 72703 Ulla Paajanen-Sainio, SVP, Head of
Investor Relations, Stora Enso Oyj, tel. +358 40 763 8767 Tommy
Borglund, SVP Communications, Stora Enso Renewable Packaging, tel:
+46 1046 71709
www.storaenso.com renewablepackaging.storaenso.com Stora Enso is
the global rethinker of the paper, biomaterials, wood products and
packaging industry. We always rethink the old and expand to the new
to offer our customers innovative solutions based on renewable
materials. Stora Enso employs some 28 000 people worldwide, and our
sales in 2013 amounted to EUR 10.5 billion. Stora Enso shares are
listed on NASDAQ OMX Helsinki (STEAV, STERV) and Stockholm (STE A,
STE R). In addition, the shares are traded in the USA as ADRs
(SEOAY) in the International OTCQX over-the-counter market. STORA
ENSO OYJ
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