Stora Enso Oyj has issued two new bond loans in Swedish kronor (“SEK-benchmarks”). The loans are being raised to fund some of Stora Enso’s SEK requirement and to offer the holders of outstanding bonds and MTNs in Stora Enso Treasury Stockholm AB the opportunity to exchange their holdings for the more liquid SEK-benchmarks.
This is the first time that an industrial company is issuing benchmark loans in Swedish kronor. The objective is to generate a liquid market and greater interest in corporate bonds denominated in Swedish kronor, and to offer an alternative to liquid government and mortgage bonds. The company intends to follow up the auction with further issues and maturities. The loans are arranged by Handelsbanken Trading and are issued under Stora Enso’s EMTN-programme (Euro Medium Term Note).
The payment date for the bonds is 29 November 2000 and have the following conditions:
Loan 10 Loan 9
Maturity 17 March 2003 17 March 2006
Amount SEK 1,000,000,000 SEK 2,000,000,000
Coupon 5.25% 6.25%
Yield 5.34% 6.21%
The issuer, Stora Enso Oyj, may issue further tranches of the two loans at a later stage and add other maturities. The loans are arranged by Handelsbanken Trading, which will also maintain a secondary market (Reuters page SVENSKA01). At a later stage, other banks may also be invited to be market makers in SEK-benchmarks. The loans have been sold and traded in blocks of SEK 100.000. The listing on the OM Stockholm Exchange and the Luxembourg Exchange has been applied. Securities will be deliverable at Euroclear.
In connection with the first auction, Stora Enso has offered the holders of existing bonds and MTNs in Swedish kronor, issued by Stora Enso Treasury Stockholm AB, the opportunity to exchange their holdings for newly issued SEK benchmarks, thereby increasing liquidity for these holders. Stora Enso will also offer the exchange possibility in the future issues.
Stora Enso is a Finnish registered company, the result of the merger of Finnish Enso and Swedish STORA, with shares quoted on the Helsinki Exchanges, the OM Stockholm Exchange and the New York Exchange. Stora Enso has a rating of BBB+ from Standard & Poor’s and Baa1 from Moody’s Investors Service.
For further information please contact
Markus Rauramo, Vice President, Head of Funding, Stora Enso Financial Services S.A.,
Tel +32 2 627 7711 or
Peter Nordquist, Director of Funding, Stora Enso Financial Services S.A.,
Tel +32 2 627 7760
