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Botnia's Uruguayan pulp mill project's loan agreements signed

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Botnia S.A., a subsidiary of Oy Metsä-Botnia Ab, has today signed a USD 230
million 10-year export loan which is covered by Finnvera and a USD 100 million
10-year IFC B-loan. Oy Metsä-Botnia Ab has also signed today a EUR 300 million
5-year multicurrency revolving credit facility. 


The World Bank's private sector financing arm, International Finance
Corporation (IFC) and Nordic Investment Bank (NIB), on their side, are each
directly committed to a USD 70 million loan to Botnia S.A. 

The funding for the pulp mill project in Uruguay comes mainly, by approximately
60%, from capital invested by Botnia and its owners, and the remaining 40% is
arranged through external loans. 

Botnia's bleached eucalyptus kraft pulp mill in Fray Bentos, Western Uruguay,
will have the annual production capacity of one million tons. The investment is
the largest industrial investment ever in Uruguay, and the project will create
approximately 8,000 new jobs in the region. 

“The mill will use best available techniques (BAT) as defined in the European
Union. The studies commissioned by IFC clearly show that the mill will not
jeopardize the environment or the present livelihoods in the area, but will
have significant positive socio-economic impacts”, says Botnia's President and
CEO Erkki Varis. 

The mandated lead arranger banks for export loan and the IFC B-loan are Calyon
and Nordea, whilst Calyon, Danske Bank and Nordea were mandated to arrange the
revolving credit facility. 

The pulp mill will start up in the third quarter of this year.

For further information, please contact:

Ville Jaakonsalo, Senior Vice President, Finance, Tel. +358 500 881070

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