#Finland #Finance #Espoo #Valmet #Revolving Credit

Valmet Secures a New EUR 450 Million Revolving Credit Facility

In a significant move to bolster its financial standing, Valmet has officially announced the closing of a EUR 450 million syndicated multi-currency revolving credit facility. This deal, reported on May 15, 2025, marks an essential step in refining the company’s financial strategy as it expands its operations and strengthens its liquidity position.

The new credit facility is set to have a duration of five years, offering Valmet the option for two one-year extensions, subject to approval from its lenders. This strategic refinancing replaces an existing EUR 300 million revolving credit arrangement that had been in place since October 2021. By increasing the facility's size and incorporating multi-currency capabilities, Valmet aims to align its financial tools with its growth trajectory and global outreach.

Valmet's liquidity status remains robust, with a gearing ratio reported at 36% as of the end of the first quarter of 2025. The financing allows Valmet to secure and further enhance its liquidity position—a crucial factor for the company’s ongoing and future operations in diverse process industries.

Financial Partners

The facilitation of this credit structure involved significant collaboration with major financial institutions. Leading the charge were Bank of America, Danske Bank, and Nordea, who acted as the Coordinating Mandated Lead Arrangers and Bookrunners. Additional support came from BNP Paribas, Citi, Credit Agricole Corporate Investment Bank, OP Corporate Bank, SEB, and Standard Chartered, all of which played roles as Mandated Lead Arrangers and Bookrunners. Danske Bank is officially recognized as the Facility Agent for this financing agreement.

Valmet is recognized globally for its innovative solutions in process technologies, automation, and services specifically designed for the pulp, paper, and energy sectors. The company employs over 19,000 professionals worldwide, all of whom are dedicated to advancing customer performance. This recent credit adjustment aligns with Valmet’s long-standing history of over 225 years in the industrial sector, demonstrating expertise in sustainable practices and continued innovation.

Looking Ahead

As Valmet continues to navigate the complex landscape of global industries, the new credit facility positions the company strategically for further growth, enabling them to pursue opportunities while maintaining a flexible liquidity strategy. With net sales approximating EUR 5.4 billion in 2024, the prospects for Valmet’s future growth look promising.

For those interested, Valmet's shares are accessible for trading on Nasdaq Helsinki, with its headquarters located in Espoo, Finland. The company encourages stakeholders and interested parties to keep an eye on its continuous developments by visiting their official website or following them on various social media platforms.