Svenska Cellulosa Aktiebolaget (SCA) has signed a new credit line for five billion Swedish kroner. This new funding constitutes a refinancing of the current unused credit lines which amount to eight million Swedish kroner, underwritten in 2017.
This credit line is mainly intended as a support structure which will remain unused and help provide a cash reserve for the company.
The initial term of the funding is five years, with two extension options by one year each. The banks involved are Svenska Handelsbanken, Danske Bank, Skandinaviska Enskilda Banken and Swedbank. The loan of one billion SEK from Nordiska investeringsbanken (NIB) has a duration of 10 years; it will help finance the expansion of bleached soft wood Kraft paste at the Östrand factory, in the municipality of Timrå, Sweden This loan will also support the maturity profile enhancement and diversify the funding.
NIB is an international financial institution which is owned by eight Member States: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. The bank will be funding private and public projects inside and outside these countries.
The core business of SCA is the forest, the largest private forestry estate in Europe. Around this unique resource, a well-developed chain of value has been built, based on renewable raw materials from our forests and others.
The company offers packaging and printing paper, wood paste, wood products, renewable energy, services for forest owners and efficient transport solutions. In 2018 the forestry product company SCA had a total of 4,000 employees; its sales amounted to approximately 18.8 billion Swedish kroner (1.8 billion euro). SCA was founded in 1929 and its headquarters are in Sundsvall, Sweden.