Montes del Plata has signed the loan agreements and as part of the financing arrangements, Stora Enso has signed an agreement to guarantee 50% of USD 1354m of loans raised by Montes del Plata. Stora Enso’s 50% share of the total guarantee will be a maximum of USD 677m.
The project is financed by USD 900m of export credit financing with twelve
years tenor, by an A loan of USD 200m with twelve years tenor from the Inter-American Development Bank (IDB) and by a B loan of USD 254m with nine years tenor from commercial banks through IDB.
Stora Enso CFO, Markus Rauramo, said: “We welcome the support of Finnvera, Finnish Export Credit (FEC), Swedish Export Credit (SEK), IDB and other financing institutions for this exciting, strategically important project. We are also pleased with the long maturity of the credit facility.”
Montes del Plata will build a new state-of-the-art 1.3 million tons per year pulp mill at Punta Pereira, in the department of Colonia, Uruguay. The total investment is estimated to be approximately USD 1.9bn. Each of the joint-venture shareholders has a 50% stake in the mill’s equity and will be entitled to half of its output. The project will be financed through equity and loans raised by Montes del Plata. Stora Enso is consolidating its 50% share with the equity method.
Source: Stora Enso
© FoodBev Media Ltd 2021
World Beverage Innovation Awards – NOW OPEN FOR ENTRIES!
The awards celebrate excellence and innovation across the global beverage industry.
Don’t miss out on having your innovations recognised on a global scale.
Deadline for entries 23 July – enter now!
Don’t get left behind
Start your free Foodbev magazine trial today and join thousands of fellow industry professionals in receiving food and drink trends direct to our business.
Click here to start your free trial