Stora Enso Signs Loan Agreement with International Financing Corporation
June 10 2005 - 1:56AM
PR Newswire (US)
Stora Enso Signs Loan Agreement with International Financing
Corporation HELSINKI, Finland, June 10 /PRNewswire-FirstCall/ --
Stora Enso (NYSE: SEO) today announced that Stora Enso today signed
a loan agreement with International Financing Corporation (IFC).
The package includes a USD 50 million Tranche A IFC facility and
USD 25 million Tranche B co-financing facility, for which Nordea
Bank is the lead arranger. The loan will be used to finance Stora
Enso's current activities and future investments in China. Stora
Enso's current projects in China include further development of
eucalyptus plantations in Guangxi province in southern China, and
investment to expand the product range and increase the capacity of
Suzhou Mill as announced in February 2004. As part of Stora Enso's
emerging markets strategy, China has been identified as one of
Stora Enso's growth areas. "Our aim is to increase the Company's
profitability through targeted investments in the fast-growing
Chinese market," comments Markku Pentikainen, head of Stora Enso
Asia Pacific. Stora Enso has set up a sustainability action plan
for the plantations in Guangxi addressing environmental and social
issues. "A sustainably managed fibre base will be a strong
foundation for Stora Enso's industrial operations in China. We also
hope that Stora Enso will be seen as a good example of how
sustainability can be implemented in plantation and mill operations
in China," says Pentikainen. "We are pleased to note that investors
such as IFC appreciate our sustainability approach in both forestry
operations and paper production. IFC sets a good example for other
investors in the region through its emphasis on socially
responsible investment." For further information, please contact:
Tim Laatsch, Senior Vice President, Communications, Stora Enso
North America, tel. 715 422 4023 Scott Deitz, Vice President,
Investor Relations, Stora Enso North America, tel. 715 422 1521
Previous press releases concerning Stora Enso's activities in
China: - 31 March 2005: UNDP to assess environmental and social
impact of forestry investment project in Guangxi, China - 28
October 2004: Stora Enso joint venture in China - 4 February 2004:
Stora Enso to modernise its fine paper machine at Suzhou, China
Stora Enso is an integrated paper, packaging and forest products
company producing publication and fine papers, packaging boards and
wood products, areas in which the Group is a global market leader.
Stora Enso sales totalled EUR 12.4 billion in 2004. The Group has
some 45 000 employees in more than 40 countries in five continents
and an annual production capacity of 16.4 million tonnes of paper
and board and 7.7 million cubic metres of sawn wood products,
including 3.2 million cubic metres of value-added products. Stora
Enso's shares are listed in Helsinki, Stockholm and New York. Stora
Enso Oyj Business ID 1039050-8 DATASOURCE: Stora Enso Oyj CONTACT:
Tim Laatsch, Senior Vice President, Communications, Stora Enso
North America, +1-715-422-4023, Scott Deitz, Vice President,
Investor Relations, Stora Enso North America, +1-715-422-1521
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