Loan to pulp mill project in Uruguay

On 12 March 2007 NIB signed a loan agreement with Botnia S.A. for the financing of Metsä-Botnia’s pulp mill project in Fray Bentos in Western Uruguay. NIB is participating in the financing with a project investment loan in the amount of USD 70 million.

The pulp mill is currently under construction and will, upon completion, produce bleached eucalyptus kraft pulp with a yearly capacity of 1 million tonnes. To minimize the effects on the environment, the mill will apply best available techniques (BAT) as defined by the European Union.

Metsä-Botnia’s pulp mill project is the largest industrial investment in Uruguay’s history and will create thousands of new jobs in the region. The investment will also be the largest Finnish private industrial investment abroad.