Swedish rolled aluminium firm Gränges AB announced this week that it has entered into two new credit facility agreements, both of which are linked to sustainability goals.
One new credit agreement is for SEK3,500 million and a tenor of three years. The term loan totals US$100 million and has a tenor of three years as well. The agreement, which was arranged by Citibank, Danske Bank, Svenska Handelsbanken, and Nordea, is linked to Gränges’ sustainability ambitions. Danske Bank and Nordea have agreed to serve as the facility’s sustainability coordinators.
The other agreement is a loan of SEK200 million with a four-year tenor. The term loan of US$40 million has a tenor of two years, and another term loan of US$20 million has a tenor of three years. This agreement, which was entered into with AB Svensk Exportkredit, is also linked to Gränges’ sustainability ambitions.
Oskar Hellström, CFO and Deputy CEO at Gränges, noted the importance of tying the firm’s financing to sustainability goals in a related press release.
“To continue integrating Gränges’ ambitious sustainability agenda in our financing is a matter of course for us at Gränges. We work with sustainability in all dimensions of our business. It strengthens our long-term development as well as the company’s financial profile, and it makes Gränges more attractive as a company. We are very pleased that our lenders are also supporting this development.”
Begun in 1873 in Stockholm, Sweden as Trafik AB Grängesberg-Oxelösund, Gränges AB was resurrected in 2013 as a private company specializing in rolled aluminium heat exchangers. It employs almost 1,800 employees at the present time at two plants – one in Finspång, Sweden, that opened in its present configuration in 1972, and a second in Shanghai, China, opened in 1996. The firm boasts a total nameplate capacity of 420 thousand metric tons per annum and an annual sales total of SEK13 billion (US$1.35 billion).
