Finnvera guarantees Valmet’s and Andritz’s deliveries to Brazil
Finnvera has granted a buyer credit guarantee for deliveries by Valmet and Andritz to Klabin S.A. in Brazil. The loan is USD 447 million and the guarantee covers 95 percent of the loan. The loan was arranged by Santander, Citibank, Bank of America and JPMorgan. The banks also acted as lenders for this facility.
Founded in 1899, Klabin is a Brazilian listed pulp and packaging paper manufacturer. The company's production facilities are concentrated in Brazil, where the company produces more than 1.5 million tons of pulp and about 2 million tons of packaging paper and board annually.
Klabin expands its operations in the state of Parana, where Finnvera has been involved in the financing arrangements of the pulp mill investment since the beginning of the project, with a buyer credit arrangement granted in 2014. For the first part of the current expansion project a buyer credit guarantee was granted in October 2019. The investment now being financed will build a new board machine to which Valmet and Adritz will have deliveries.
A large part of Finnvera's pulp and paper exposure is located in Latin America. In terms of Finnvera’s country exposures, Brazil was the fourth largest in 2021.
Information about the guarantee agreement
-Signing date of the Facility Agreement: December 30, 2021
-Signing date of the Finnvera Guarantee Agreement: January 25, 2022
-Name of the Guarantee Holder: Banco Santander S.A.
- Name of the Exporter: Valmet Technologies Oy, Valmet AB, Valmet Celulose, Papel e Energia Ltd, Andritz Oy, Andritz Brasil Ltda
- Name of the Lenders: Banco Santander S.A., Citibank, N.A. London Branch, Bank of America, N.A., JPMorgan Chase Bank, N.A., London Branch
- Name of the Buyer and Borrower: Klabin S.A.
- Goods: Board maschine PM28 and pulp mill parts
- Country of Export transaction/project: Brazil
- Credit amount USD: 447,44 millions
- Credit period: 21 months + 10 years
- Percentage of cover: 95%
- ES-risk classification: A
- International standards applied in benchmarking: International Finance Corporation (IFC) Performance Standards and relevant EHS Guidelines.
- Contact point: [email protected]
- Environmental and social impact information: As for Klabin, a comprehensive environmental and social impact assessments have been carried out and the project has been monitored since the beginning of the project. In connection with the processing of the expansion project, the previous regular monitoring of the project was expanded to cover the investment now being in question.
- Date of publish: 20 December 2022