Preem signs SEK 3 billion loan agreement with Swedish Export Credit Corporation
As part of the strategy to switch to large-scale renewable fuel production, Preem will sign a SEK 3 billion loan agreement with Swedish Export Credit Corporation (SEK). The loan is covered by the Swedish National Debt Office's program for green credit guarantees.
This is the first guarantee the Swedish National Debt Office issues within the framework of the central government's green guarantee program and intends to finance Preem's planned major investment at the Lysekil refinery for the production of biodiesel based on renewable raw materials. The biodiesel production will play a central role for the transport sector in the future and contribute to increased Swedish self-sufficiency in biofuels.
“Preem is making the biggest transition in the company's history, and right now a number of crucial projects are underway at our refineries that will transform us into a climate-neutral business. The loan will enable us to speed up our investments and secure an increased supply of sustainable biofuels for the Swedish transport sector,” says Lina Stolpe, CFO at Preem.
The total cost of Preem's investment is SEK 3,525 million and the company will receive a green loan of SEK 3 billion. The loan tenor is 7 years and is guaranteed by the Swedish National Debt Office with a green credit guarantee that covers 80 percent of the loan amount.
“Reducing the impact of climate change is one of the most important challenges of our time. The financing of Preem is part of SEK's investment to support the export industry's transition and competitiveness, and achieve Sweden's high climate ambitions,” says Magnus Montan, CEO of Swedish Export Credit Corporation (Svensk Exportkredit).
The loan is earmarked for investment at the Lysekil refinery regarding the reconstruction of the so-called Synsat plant, which today produces diesel. The purpose of the reconstruction is to increase Preem's production of biofuels by up to 950,000 m3 annually, which will reduce fossil carbon dioxide emissions at the user level by at least 1.7 million tonnes per year.
To be able to take advantage of the government's green credit guarantees, it is required that investments contribute to Sweden's environmental and climate goals.
The loan agreement with SEK is conditional on approval from the Preem Group's other external financiers and on Preem obtaining the necessary environmental permits. Decisions on environmental permits for the project are made by the Swedish Land and Environmental Court.
For more information, please contact:
Preem Press Office
press@preem.se
+46 (0)70-450 10 01
PREEM is Sweden’s largest fuel company. Our vision is to lead the transition toward a sustainable society. By 2030, Preem will produce 5 million cubic meters of renewable fuels, and to achieve climate neutrality by 2035. Preem’s two refineries are among the most modern and environmentally friendly in Europe with a refining capacity of over 18 million cubic meters per year. Our business includes production, sales, distribution, as well as trading and the sale of goods. We refine and sell fuel, heating and lubricating oil as well as other products to companies and individuals. Most of our products, almost 80 percent, are exported to the international market, mainly to northwestern Europe. We have a nationwide service network with 520 filling stations for private and commercial traffic. Preem AB has around 1,500 employees, of which 1,100 work at our refineries. In 2021, Preem’s turnover was SEK 89.6 billion.
