Stora Enso successfully issues two five-year bonds

August 24, 2010 by timbercommunity

Stora Enso has today successfully issued two five-year bonds total of SEK 2 300 million under its EMTN (Euro Medium Term Note) programme. Both bonds are due on 1 September 2015.

A SEK 1 000 million bond pays a floating coupon 3 months  Stibor + 370 basis points and has an issue/reoffer price of 100.000. A SEK 1 300 million bond pays a fixed coupon of 5.75% and has an issue/reoffer price of  99.778 to give a spread of 370 basis points over 5-year mid swap. The bonds have no financial covenants or change of control covenant. Sole arranger and  bookrunner for the transaction was SEB.               

“These bonds, extending the Group's maturity profile, were issued to benefit    from the low levels of interest rates, resulting in an attractive all-in cost.  The Group will continue to manage its maturity profile proactively to gain from favourable sources of financing. We have very strong liquidity with EUR 856 million of cash at the end of second quarter,” says Jyrki Tammivuori, SVP, Group Treasurer.