NEWS

Södra signs loan agreement with Nordic Investment Bank for SEK 1 billion ($122.5 million)

Monday, Apr 25, 2016

Södra Skogsägarna ekonomisk förening has signed a loan agreement with Nordic Investment Bank (NIB) for SEK 1 billion (Euro 108 million). The loan will be used to finance expansion of the Värö pulp mill in Sweden, as the company says in the press release received by Lesprom Network.

In recent years, Södra has largely been self-financed by a highly positive cash flow. Södra's Group strategy focuses on growth and future investment, whereby securing long-term financing in addition to the Group's existing credit commitments, is now considered viable.

The loan from NIB has a term of ten years and is mainly intended to cover investments in increased capacity at Värö, which will also improve the mill's energy efficiency. A higher production capacity will increase the supply of renewable energy, provide more renewable district heating and increase the amount of bioenergy.

The operations at Värö are already fossil-fuel free. Investment in Värö will also help neighbouring areas reduce their fossil-fuel dependence.

 

Source : lesprom.com

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