Mayr-Melnhof Group Successfully Places One Billion EUR Schuldschein Loan

The proceeds of the loan will be used to finance the acquisition of Kotkamills, Finland, and IP Kwidzyn, Poland, as well as for organic growth.

March 1, 2021 - Mayr-Melnhof Karton AG, together with the arranging banks Erste Group, Bank Austria and Raiffeisenbank International, has successfully placed a Schuldschein loan and Namensschuldverschreibungen in a total volume of EUR 1 billion with a broadly diversified group of institutional investors in Austria and abroad. The original target volume of EUR 300 million was oversubscribed by a factor of six. The transaction comprises tranches with fixed as well as variable interest rates over a duration of 5 to 15 years. The average duration amounts to 8.8 years with an average interest rate of 1.5 %.

The proceeds will be used to finance the acquisition of Kotkamills, Finland, and IP Kwidzyn, Poland, as well as for organic growth.

Franz Hiesinger, CFO of the MM Group, comments: "In a favorable capital market environment, a high level of confidence was placed in our stable business model and the growth course in sustainable and innovative fiber-based packaging solutions we have embarked upon. Following this transaction, the Group's financing continues to be based on a very solid capital base."

Mayr-Melnhof Group operates two business divisions — MM Karton is Europe's largest cartonboard producer with a leading position in recycled fiber-based cartonboard. The division has the capacity to produce over 1.7 million tons per year. MM Packaging is the leading producer of folding cartons in Europe. The division processes around 800,000 tons of cartonboard and paper per year. To learn more, visit: www.mayr-melnhof.com.

SOURCE: Mayr-Melnhof Group