NIB signed EUR 92m 7-year-maturity loan agreement with Brazil’s Banco Nacional de Desenvolvimento Econômico e Social (BNDES) to finance greenfield pulp mill project in Brazil

NIB has signed a USD 100 million (EUR 92 million) 7-year-maturity loan agreement with Brazil’s Banco Nacional de Desenvolvimento Econômico e Social (BNDES) for on-lending to finance Klabin S.A.’s greenfield pulp mill project.

HELSINKI, 21-7-2015 — /EuropaWire/ — The loan is for financing the construction of a greenfield pulp production facility in the municipality of Ortigueira in the state of Paraná, Brazil. The so-called “Puma project” will be implemented by the country’s largest paper producer and exporter, Klabin S.A.

With an annual production output of 1.1 million tonnes of bleached eucalyptus-based hardwood pulp, destined for both export and domestic sale, and 400,000 tonnes of bleached pine-based softwood pulp, in part to be used for the production of Brazil’s first domestic fluff pulp, the completed “Puma” mill will almost double Klabin’s production capacity.

The new factory will utilise state-of-the-art technologies and equipment supplied by manufacturers in the Nordic pulp and paper cluster.

“Participating in large projects such as “Puma” and advancing into growth markets is an efficient way for industry leaders in NIB’s member countries to uphold a high level of their know-how and to strengthen their competitiveness”, says Henrik Normann, NIB President & CEO.

The pulp mill is expected to be self-sufficient on renewable energy. Its 270 MW biomass power plant, running on by-products of the pulp process, will make the surplus of renewable energy available for sale to the national power grid.

The project will include the construction of a 42-kilometre 230 kV transmission line to connect the pulp mill to the electricity grid, and a 23-kilometre secondary railway to link it to the rail network.

The construction of a wastewater treatment plant and the employment of chemical recovery processes to reclaim cooking chemicals spent in the pulping process are included in the project plan.

Klabin S.A. is Brazil’s largest integrated manufacturer of packaging paper and paperboard. Klabin runs 15 industrial plants and exports to more than 60 countries.

The state-owned BNDES provides long-term financing to projects that contribute to the development of the country and the competitiveness of the national economy.

NIB is an international financial institution owned by eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. The Bank finances private and public projects in and outside the member countries. NIB has the highest possible credit rating, AAA/Aaa, with the leading rating agencies Standard & Poor’s and Moody’s.

For further information, please contact
Ms Marjo Harri, Head of Financial Institutions & SME, Origination, at +358 10 618 0227, marjo.harri@nib.int

Ms Lisa-Maria Altenberger, Communications Unit, at +358 10 618 0234, lisa-maria.altenberger@nib.int

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NIB signed EUR 92m 7-year-maturity loan agreement with Brazil’s Banco Nacional de Desenvolvimento Econômico e Social (BNDES) to finance greenfield pulp mill project in Brazil