UPM-Kymmene and APRIL announce signing of a USD 250 million term loan facility for China joint venture

Archive 1.12.1998 0:00 EET

UPM-Kymmene Corporation and Asia Pacific Resources International Holdings Ltd (APRIL) today announced that they have finalised a USD 250 million term loan facility for Asia Pacific Forest Products (Suzhou) Pte. Ltd. (AP Suzhou) with a group of international banks. AP Suzhou is a joint venture company comprising a 350,000 tpa fine paper mill that is expected to commence operation early next year in Changshu, China and a 30,000 tpa converting plant currently in operation in Suzhou, China (both near Shanghai). UPM-Kymmene and APRIL hold equal 49% positions in AP Suzhou.
The loan facility was arranged by Chase Manhattan plc and Citicorp International Limited and is structured as a seven-year term loan amortising after a 36 month grace period. The loan carries a margin of 50 bp over LIBOR.
The facility is supported by a cash deficiency support agreement between the joint venture partners and the lenders.
The cooperation between UPM-Kymmene and APRIL to achieve completion of the loan facility further demonstrates the partners' commitment to their previously announced strategic alliance.
The facility completes the financing of the China Joint Venture and replaces the USD 121 million shareholder loan and the USD 54.2 million bridging loan granted by UPM-Kymmene to the JV at an earlier stage.
For more information, please contact:
Mr Olof Bärlund, Senior Vice President, International Finance, UPM-Kymmene Corporation, tel. +358 204 15 0092
Mr Mark Blackburn, Chief Financial Officer, APRIL Singapore, tel. +65 420 6252