Of the pulp mill projects currently under construction, this is the only major project in the world that focuses on the utilisation of the eucalyptus tree. The goal is to have the new line up and running in 2021.
The banks that arranged the financing for the project are BNP Paribas Fortis SA/NV, Banco Santander S.A. and JP Morgan Chase Bank N.A., London Branch. The credit financed by Finnish Export Credit and guaranteed by Finnvera amounts to EUR 555 million.
Pulp makers need the help of export credit agencies in financing their projects as the total costs of new mills may rise to EUR 2–3 billion. Due to the prominent position of Finnish machinery suppliers, Finnvera acts as a provider of financing in nearly all major pulp projects in the world.
Exporters: Andritz and Valmet
Guarantee Holder: BNP Paribas Fortis SA/NV
Lender: Finnish Export Credit Ltd
Arrangers: BNP Paribas Fortis SA/NV, Banco Santander S.A., JP Morgan Chase Bank, N.A., London Branch
Buyer: Celulose Arauco y Constitucion S.A.
Buyer's country: Chile
Export transaction/Goods: Equipment and services for a pulp mill (Mapa Project)
Credit amount: EUR 555 million
Credit period: 8.5 years
Project classification: A
Source of environmental and social impact information (projects in category A):
Basic information as well as information on environmental and social impacts were published at least 30 days before the guarantee agreement was signed. Date of publication: 24 August 2018
International standards applied in benchmarking: IFC Performance Standards and relevant EHS Guidelines
Contact point: environment (at) finnvera.fi
Information published: 7 October 2019