Finnvera made its first bond subscription

Last year Finnvera was authorised to subscribe bonds issued by SMEs. As of the beginning of the current year, this authorisation was expanded to encompass enterprises larger than SMEs. Finnvera has now made its first bond subscription, which enabled the arrangement of financing for an investment of over 100 million euros by Kotkamills. The investment is used to convert a paper machine so that it will produce packing board instead of magazine paper.

“The financing package ensured continuity for the Kotkamills production plant that gives work to 500 people. Finnvera’s anchor role in the subscription ensured that the bond issue could be carried out. The development of the bond market and the diversification of financing sources are extremely important for enterprises of this size class,” says Markku Hämäläinen, CEO of Kotkamills.

The fact that Finnvera can subscribe bonds improves enterprises’ possibilities to obtain financing from the market. Finnvera makes its bond subscriptions at market price.  A normal enterprise analysis is conducted when the project is being reviewed.

Additional information:
Jussi Haarasilta, Senior Vice President +358 29 460 2601