Tornator acquires EUR 350 million in green bank loan funding
Forest company Tornator Oyj has entered into EUR 350 million secured, green bank loan funding. This is the first loan agreement under Tornator’s ‘Green Finance Framework’ published in the autumn, and a clear demonstration of climate responsibility as part of the company’s operations. The framework has been accorded the ‘greenest’ rating, ‘dark green’, by the Norwegian Centre for International Climate and Environmental Research CICERO.
The bank loan consists of a total of EUR 250 million in green term loans and a EUR 100 million Revolving Credit Facility, which can also be used for the company’s general financing purposes. Of the loans now agreed, EUR 300 million will mature in 2025 and EUR 50 million in 2026. The funds will be used to repay Tornator’s loans maturing in 2020 and increase the company’s capacity to execute its growth strategy.
Together with the new bank loan funding, Tornator will increase the size of its commercial paper programme from EUR 200 million to EUR 300 million. Under the new commercial paper programme, it is possible to issue both green commercial papers that meet the requirements of the Green Finance Framework, and ordinary commercial papers for general financing purposes.
The bank loan facilities and commercial paper program were arranged by Danske Bank, OP (agent and security agent) and SEB (coordinator).
Antti Siirtola, CFO, tel. +358 (0)40 773 0975
Tornator is a leading company specialised in sustainable forestry in Europe. It owns forests in Finland, Estonia and Romania. In 2019, the Group’s net sales were some €106 million, and the balance sheet value was about €1.8 billion. The Group has about 180 employees. In total, its forests directly provide work for the company’s employees as well as contractors and their staff worth some 1,000 person-years. The parent company’s shareholders are Finnish investors, mostly institutions. Tornator’s mission is “generating sustainable well-being from the forest”.