Unemployment Insurance Fund (TVR): TVR has decided

Unemployment Insurance Fund     Stock Exchange Release     12 April 2017 at 15:30                                                

Unemployment Insurance Fund (TVR) has decided to seek for the continuation of the state guarantee

TVR has since 2015 had a single currency revolving credit facility (RCF) worth 700 million euros backed by a state guarantee worth 770 million euros. TVR has decided to renew the maturing RCF with a new facility worth 400 million euros and to seek for the continuation of the state guarantee worth 440 million euros.

The base scenario estimate drafted by TVR of the development of the economy and unemployment in Finland indicates that unemployment would gradually decline in the coming years and that TVR would most probably be in a position to finance the benefit payments entitled to it with the contributions collected assuming the current total levels of unemployment insurance contributions. The net position would according the base scenario estimate be positive in the year 2018 being negative one year earlier. TVR states further that it's financial performance is strongly dependent on the development of the Finnish economy and employment. A change of one percentage point in the level of unemployment rate compared to the level estimated would generate a change in net position worth 350 million euros on a yearly basis. Hence the euro amounts of contributions collected and benefits paid standing in the tables below could deviate significantly whether the economy would face meaningful negative fluctuations.

Unemployment Insurance Fund has a total amount of debt withdrawn worth slightly more than 1.000 million euros at the end of 2016. The debt position constitutes mainly of two bonds issued in 2015. The bond with the nominal amount of 300 million euros matures in 2018  and the one with the nominal amount of 600 million euros in 2019. TVR would according to the base scenario estimate be most probably in a position to repay the bond proceeds without any further need for refinancing.

TVR aims to ensure various options to refinance it's operations if needed in the capital markets as well as utilizing debt financing facilitated by banks and therefore considers it necessary to renew the RCF as part of it's funding program. Would the development of the economy turn out to be weaker than forecasted would TVR need to refinance the maturing bonds at least partially with new debt withdrawals. In that case the debt financing would be carried out among other things utilizing the single currency revolving credit facility (RCF).

Additional  information:

Janne Metsämäki, Managing Director. tel. +358 40 522 3614 Tapio Oksanen, Deputy Managing Director, CFO tel. +358 40 539 4651

Helsinki, 12 April 2017

Unemployment Insurance Fund (TVR)

Tapio Oksanen Deputy Managing Director

Distribution: NASDAQ OMX Helsinki Media www.tvr.fi