NIB and Finnvera to finance eucalyptus pulp mill in Brazil

At the Fibria facility in Três Lagoas, Brazil. Photo: Finnvera Oyj.

The Nordic Investment Bank (NIB) and the Finnish state export credit agency Finnvera Oyj have signed a 9.5-year loan agreement on a USD 225 million (EUR 199 million) facility that will be onlent to a eucalyptus pulp mill project in Brazil.

The funds will be used to finance a new pulp production line developed by the Brazilian forestry company Fibria Celulose S.A. The new pulp production line, Horizonte 2, will be located in the company’s existing facility in Três Lagoas in the state of Mato Grosso do Sul, south-western Brazil.

Horizonte 2 will be the second largest eucalyptus kraft bleaching pulp production line in the world. The new line will more than double the capacity of the Três Lagoas facility to over 3 million tonnes of pulp a year. The line is expected to start production in the fourth quarter of 2017.

Industrial manufacturers in NIB’s member countries will supply equipment to Horizonte 2. The deliveries include e.g. wood yard, fibre line, white liquor plant, recovery boiler and evaporation equipment.

“The NIB-funded project will positively affect the Nordic forest industry cluster, which has a strong competence in this sector. Participation in large projects and advancing into growth markets is an efficient way for industry leaders in NIB’s member countries to maintain their technological leadership and international competitiveness”, says Henrik Normann, NIB President & CEO.

“The forest industry is one of the most important sectors for Finnvera’s export financing. The Fibria project promotes equipment exports by the Finnish technology industry. We are pleased that NIB has enabled us to expand our funding,” says Pauli Heikkilä, CEO of Finnvera.

NIB’s loan will be onlent to Fibria through Finnvera that contributes a total of EUR 383 million to the project and participates in an international pool of financiers that also includes Brazil’s development bank BNDES, the regional fund Fundo de Desenvolvimento do Centro-Oeste and commercial banks. The total investment amounts to approximately USD 2 billion.

Fibria Celulose S.A. is the world’s leading eucalyptus pulp producer. The company’s produce is exported to more than forty countries.

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
Nordic Investment Bank:

Taina Ulkoniemi, Senior Manager Origination, at +358 10 618 0231,

Lisa-Maria Altenberger, Communications Officer, at +358 10 618 0234,

Finnvera Oyj:

Pauli Heikkilä, Chief Executive Officer, Finnvera, at +358 29 4602 400

Satu Malkamäki, Communications Manager, Finnvera, at +358 29 4602 878