Norske Skog Skogn has received its first green loan from DNB Bank ASA to reduce emissions from its new thermo-mechanical pulp line and to buy certified wood fiber.
Sep 20, 2024
Norske Skog Skogn has entered into a USD 47.16 million term facility loan agreement with DNB Bank ASA. The facility qualifies as a green loan subject to establish green project criteria relating to emission reductions from the newly started thermo-mechanical pulp line and purchases of certified wood fiber.
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“We are pleased to raise our first green loan at Norske Skog Skogn and progress with our work to hold a majority of our debt financing at the subsidiary level. The financing will free up operating cash flows at Skogn to be used for purposes across Norske Skog,” says Norske Skog’s CEO Geir Drangsland.
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The loan proceeds are expected to be received during the third quarter subject to certain conditions precedent. Norske Skog has cancelled its undrawn EUR 31 million revolving credit facility with DNB at the parent level, resulting in the release of USD 30.94 million in restricted cash. Further, debt financing at the parent level in the form of overdraft or revolving credit facilities will be considered within the amounts permitted by existing loan agreements in the group.
