June 2021 Fintoil successfully completed the issuance of EUR 70 million Senior Secured Green Bond, rated Medium Green by Cicero, combined with a committed EUR 10m Super Senior Revolving Credit Facility. Fintoil has now secured the financing comprising ca. EUR 130 million of equity and debt for its biorefinery investment in Hamina, Finland. In addition to the green bond and SSRCF, Fintoil’s financing consists of EUR 40 million of preferred equity and EUR 11 million of seed equity. The investment is thus fully financed and on schedule for completion by July 2022.
The Senior Secured Green Bond has a maturity of 4 years and carries a fixed coupon of 7.5% p.a. The proceeds from the SSGB will be used entirely on the biorefinery investment according to Fintoil’s Green Finance Framework. Fintoil also secured a multi-year binding commitment for a Super Senior Revolving Credit Facility for working capital needs and initially intended for the financing of raw material purchases.
The new biorefinery accelerates efforts by Finland and the EU to reach carbon neutrality as the CO2 footprint of CTO derivatives is up to 90% lower than its fossil alternatives. Crude tall oil is classified as a sustainable feedstock for advanced biofuels in the EU’s Renewable Energy Directive. Fintoil’s production is projected to enable reduction of CO2 emissions of up to 400,000 tonnes annually equaling to roughly one percent of Finland’s total net emissions.
Second Opinion CICERO Fintoil Hamina Oy: Download here
Fintoil Green Bond Framework: Download here
Terms and Conditions of the Notes: Download here