Tornator Oyj Explores Sustainable Green Note Issuance
Tornator Oyj is taking significant steps towards sustainability by considering the issuance of its inaugural rated senior secured green notes. These notes are expected to total EUR 300 million and are projected to receive a Baa3 (stable) rating from Moody’s Ratings.
Details of the Note Issuance
The green notes, with a maturity set for 2031, are part of Tornator's comprehensive green finance framework launched in April 2023. This initiative reflects the company's commitment to sustainable practices within the forestry sector.
Utilization of Proceeds
Upon issuance, the net proceeds are anticipated to be utilized in alignment with the established framework. One major aspect of this plan includes the prepayment of a EUR 200 million green bank loan, which is set to mature in March 2026. This strategic move aims to reduce existing debts while promoting greener financial practices.
Lead Arrangers and Advisors
The issuance process is being facilitated by prominent financial institutions, including Danske Bank A/S, OP Corporate Bank plc, and Skandinaviska Enskilda Banken AB (publ). OP Corporate Bank plc serves as the rating advisor, ensuring the issuance aligns with market expectations and standards.
Tornator's Commitment to Sustainable Forestry
Tornator Oyj is recognized as a leader in sustainable forestry across Europe. The company manages forests in Finland, Estonia, and Romania, driving a commitment to environmental stewardship and responsible resource management. In 2023, Tornator reported an approximate turnover of €195 million and a balance sheet value of about €3.6 billion, showcasing the company's solid financial standing.
Workforce and Community Impact
With around 190 employees within the group, Tornator’s operations contribute to approximately 1,600 person-years of employment through its employees and contractors working on forestlands. This aspect highlights the company’s role in providing job opportunities and fostering community growth.
Contact Information
For further inquiries regarding the green note issuance, interested parties can contact CFO Antti Siirtola at +358 40 773 0975.
Frequently Asked Questions
What are the new green notes from Tornator Oyj?
The new green notes are senior secured debt instruments targeting EUR 300 million, expected to be rated Baa3 by Moody’s.
How will Tornator use the proceeds from these notes?
The proceeds will mainly be utilized to prepay an existing EUR 200 million green bank loan and finance sustainable projects.
Who are the lead arrangers for the issuance?
The lead arrangers include Danske Bank A/S, OP Corporate Bank plc, and Skandinaviska Enskilda Banken AB.
What is Tornator's mission in sustainable forestry?
Tornator is committed to generating sustainable wellbeing from forests while ensuring effective resource management.
How many employees does Tornator have?
Tornator employs around 190 staff members and supports approximately 1,600 person-years of employment through its operations.
