Helsinki, Finland, 04 April 2011 -- 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 focused 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 prioritizing local sustainable supplies of fiber 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," said Markus Rauramo, Stora Enso CFO. "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.”
Stora Enso is a global paper, packaging, and wood products company producing newsprint and book paper, magazine paper, fine paper, consumer board, industrial packaging, and wood products. The Group is a world leader in forest industry sustainability. Stora Enso is listed in the Dow Jones Sustainability Index and the FTSE4Good Index. Stora Enso employs some 26,000 people worldwide, and sales in 2010 amounted to EUR 10.3 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.