Taaleri’s associated company, Fintoil, secured 80 million euros




TAALERI PLC PRESS RELEASE JUNE 23, 2021 AT 9:15 AM (EST)

Taaleri Associated company Fin oil secured an 80 million euro senior debt package and reached financial close for its investment in the biorefinery

Yesterday, June 22, 2021, Fintoil successfully completed the issuance of a € 70 million senior covered green bond, rated Medium Green by Cicero, combined with a € 10 million super senior revolving credit facility. . Fintoil has now secured the funding comprising approx. 130 million euros in equity and debt for its investment in the biorefinery in Hamina, Finland. The investment is now fully funded and is expected to be completed by July 2022.

The senior covered green bond has a maturity of 4 years and carries a fixed coupon of 7.5% per annum. The proceeds from the SSGB will be fully used for investment in the biorefinery in accordance with Fintoil’s green financing framework. Fintoil has also secured a firm multi-year commitment for a super senior revolving credit facility for working capital requirements and initially intended to finance raw material purchases. Nordea Bank Abp acted as sole lead manager of the issue and provided the super senior revolving credit facility.

With the completion of senior debt financing, Fintoil reached financial close for its CTO biorefinery project amounting to approx. € 130 million, comprising senior covered green bonds (€ 70 million) and a revolving super senior credit facility (€ 10 million) as well as € 40 million in preferred shares and € 11 million euros of seed money. Taaleri’s corporate finance arm, Taaleri Kapitaali, has acted as financial advisor to Fintoil at all stages of the financing since 2018.

Fintoil’s biorefinery in Hamina, which will start up in July 2022, refines crude fatty acids from the softwood pulp by-product, crude tall oil (CTO), to produce second-generation renewable diesel and fuel products. biochemicals for the chemical, food and pharmaceutical industries. The biorefinery has an annual refining capacity of 200,000 tonnes of CTO feedstock. Fintoil aims for a turnover of 150 million euros and will employ 35 people directly and around 100 people indirectly. The Fintoil refinery uses the patented NEXPINUS â„¢ technology provided by Neste Engineering Solutions, which reduces energy consumption by more than 40% compared to a traditional tall oil refinery. When completed, the Hamina biorefinery will be the third largest crude tall oil refinery in the world.

The new biorefinery accelerates Finland and the EU’s efforts to achieve carbon neutrality, as the CO2 footprint of CTO derivatives is up to 90% lower than that of its fossil alternatives. Crude tall oil is classified as a sustainable feedstock for advanced biofuels in the EU Renewable Energy Directive. The production of Fintoil is expected to reduce CO2 emissions by up to 400,000 tonnes per year, or about one percent of Finland’s total net emissions. Fintoil aims for a CO2-free production process as the world’s first CTO biorefinery by 2027.

Fintoil CEO Jukka Ravaska said, “With the completion of the senior debt financing program, our investment in the biorefinery at Hamina is now fully funded and the company has also secured its working capital. I would like to thank all the investors for their vote of confidence and Finnvera for their subscription which made the bond issue successful. We are now happy to be able to focus all of our efforts on completing the investment in the biorefinery. The construction project, which began in February, proceeded without delay or budget overrun. We are confident that our CTO refinery will start up as planned in July 2022. ”

Vesa Heikkilä, Managing Director of Taaleri Kapitaali, says: “Our multi-year mandate to organize the financing of Fintoil has now been completed. Over the past three years, funding for the investment project has been made possible by a group of Finnish family offices as well as institutional and private investors selected as co-investors of Taaleri. We are pleased that the senior debt package has also attracted Nordic institutional investors. I think this is a sign not only of a growing interest in impact investing, but also that tackling climate change and the green transition can open up profitable and exciting business opportunities for investors.

Further information:

Jukka Ravaska, CEO, Fintoil Oy, +358 50 310 4437, jukka.ravaska@fintoil.com
Vesa Heikkilä, Managing Director, Taaleri Kapitaali Oy, +358 50 355 4541, vesa.heikkila@taaleri.com

Informations about Fintoil

Fintoil was founded in 2017 to focus on the refining of crude oil. FINtoil’s founders and key people have decades of experience in crude oil investments and businesses. The main shareholder of Fintoil with its 27.4% stake is Taaleri Investments Ltd, which manages the own investments of the Taaleri group. Other shareholders include the Finnish co-investors, founders and managers of Taaleri.

Taaleri in brief

Taaleri is a Nordic investment and asset manager with a focus on renewables and other alternative investments. We channel capital to economically profitable businesses that have a lasting positive impact on the environment and society. We have been a signatory of the United Nations Principles for Responsible Investment (UNPRI) since 2010. Our vision is to be a Nordic pioneer in alternative investments focused on sustainability.

Taaleri has two business segments: Private Asset Management and Strategic Investments. The management of private assets consists of renewable energies, real estate. bio-industry and infrastructure companies. The Strategic Investments segment consists of Garantia Insurance Company Ltd.

Taaleri has € 1.7 billion in assets under management in its private equity funds and co-investments. The company has around 120 employees. Taaleri Plc is listed on Nasdaq Helsinki.

www.taaleri.com

Siri Markula, Head of Communications and International Relations, tel. +358 40 743 2177, siri.markula@taaleri.com



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