Södra signs loan agreement with NIB for SEK 1 billion
Södra Skogsägarna ekonomisk förening has signed a loan agreement with Nordic Investment Bank (NIB) for SEK 1 billion (EUR 108 million). The loan will be used to finance expansion of the Värö pulp mill.
In recent years, Södra has largely been self-financed by a highly positive cash flow. Södra’s Group strategy focuses on growth and future investment, whereby securing long-term financing in addition to the Group’s existing credit commitments, is now considered viable.
About the loan agreement
The loan from NIB has a term of ten years and is mainly intended to cover investments in increased capacity at Värö, which will also improve the mill’s energy efficiency. A higher production capacity will increase the supply of renewable energy, provide more renewable district heating and increase the amount of bioenergy.
The operations at Värö are already fossil-fuel free. Investment in Värö will also help neighbouring areas reduce their fossil-fuel dependence.