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Metsä Fibre

Finnvera guarantees Metsä Fibre's investment in Kemi

The value of the Metsä Fibre investment is EUR 1.6 billion. Finnvera grants an 80 per cent guarantee cover for a EUR 500 million loan with a repayment period of 8.5 years. Finnvera is the biggest single debt financier of the project.
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Metsä Fibre, part of Metsä Group, has made the investment decision to build a new bioproduct mill in Kemi, Finland. In the mill renewable wood raw material and production side streams are used in full as different bioproducts, thus replacing fossil-based materials and fossil fuels. The concept of the plant to be built in Kemi is similar to the Äänekoski bioproduct plant launched in 2017.

The value of the Metsä Fibre investment is EUR 1.6 billion. Finnvera grants an 80 per cent guarantee cover for a EUR 500 million loan with a repayment period of 8.5 years. Finnvera is the biggest single debt financier of the project. Finnvera's export credit guarantee is possible in a domestic export-promoting investment project. The mill will increase annual exports from Finland by approximately EUR 0.5 billion.

Also the main equipment supplier is Finnish, namely Valmet. The Kemi bioproduct mill project’s degree of Finnish origin is estimated to be very high, approximately 70%.The large project will have significant positive impacts on the whole country. 

The construction phase will take approximately two and a half years, and the mill will be completed during the third quarter of 2023.

Name of the Guarantee Holder: Nordea Bank Abp, Filial i Sverige
Name of the Arrangers: BNP Paribas Fortis S.A./N.V., Crédit Agricole Corporate and Investment Bank, Danske Bank A/S, DNB Bank ASA, Handelsbanken Capital Markets, Svenska Handelsbanken AB (Publ), Nordea Bank Abp, OP Corporate Bank plc, Skandinaviska Enskilda Banken AB (Publ), Swedbank AB (Publ)
Name of the Supplier: Valmet Technologies Oy, Valmet Automation Oy
Name of the Buyer and Borrower: Metsä Fibre Oy
Project: the domestic export related industrial investment in a bio-product mill to be built on the Borrower’s site located in Kemi.
Country of project: Finland
Credit amount: EUR 500 million
Credit period: 2.5 + 8.5 years
Date of publish: 1 March 2021