Metsä Board’s Bank Financing Facility with Sustainability Targets
Castrén & Snellman advised the coordinator, Nordea, and the other mandated lead arrangers and lenders, which were Crédit Agricole Corporate and Investment Bank, Danske Bank A/S, DNB Bank ASA, Handelsbanken, OP, SEB and Swedbank, in a bank financing facility for Metsä Board Corporation, part of Metsä Group.
The facilities consists of a EUR 150 million, five-year term loan and a EUR 200 million, five-year multicurrency revolving credit facility (RCF) with two one-year extension options and a EUR 50 million accordion option. The margin of the RCF is linked to sustainability criteria that are based on selected Metsä Board 2030 sustainability targets:
1. Reduction in specific water consumption
2. Reduction in specific energy consumption
The new facility will be used to repay the existing EUR 50 million term loan and to replace the undrawn EUR 150 million revolving credit facility maturing in March 2020.
‘Linking the pricing of our financing to sustainability criteria demonstrates the management’s strong commitment to reaching our recently announced, very ambitious 2030 sustainability targets’, said Jussi Noponen, CFO of Metsä Board.