Current issue
Our Partners
NEWS
(02/28/2014 / sha)
Stora Enso: Strengthening co-operation with IFC in China
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 EUR 43 million (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.
