The Finnish biorefinery company Fintoil Oy has announced that it has achieved full financing of its planned Hamina crude tall oil (CTO) biorefinery. On June 22, 2021, the company issued a EUR 70 million green bond, and a total of EUR 130 million in debt and equity financing has now been raised investment making it fully financed. Once completed, the biorefinery will be the world’s third-largest crude tall oil (CTO) biorefinery.
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The biorefinery is being built in the Port of HaminaKotka and will utilize Neste Engineering Solutions’ patented “NEXPINUS” technology. The plant will have an annual refining capacity of 200 000 tonnes of CTO feedstock which once completed will make it the world’s third-largest crude tall oil refinery.
According to a statement, the financing consists of a EUR 70 million senior green bond, a EUR 10 million SSRCF (Super Senior Revolving Credit Facility) credit facility, a EUR 40 million preferred equity instrument, and a EUR 11 million equity financing.
We are extremely pleased to have a group of domestic and Nordic investors on board. With yesterday’s bond issue our biorefinery investment in Hamina is now fully financed and the company has also secured its working capital financing. I would like to thank all the investors for their vote of confidence and Finnvera for their underwriting which made the bond issue successful. We are confident that our CTO refinery will start up as scheduled in July 2022, said a pleased Jukka Ravaska, CEO of Fintoil.
Construction work should be completed in July 2022 and the commercial operations are expected to start then.
The funding we received will ensure the implementation of a biorefinery investment in Hamina that utilizes the by-products of the pulp industry. This shows that tackling climate change can open profitable business opportunities. The green funding certificate we received from the climate research institute Cicero confirms the company’s previous own analysis that Fintoil’s end products generate a significant reduction in carbon dioxide emissions, said John Lindahl, Chairman of Fintoil’s board.
Nordea Bank Abp acted as the Sole Lead Manager of the issue and provided the SSRCF. The company’s legal advisor was HPP Attorneys and the legal advisor of the financing arrangement was Roschier Attorneys. Taaleri Kapitaali has acted as Fintoil’s financial adviser in all stages of financing since 2018.
