#Sweden #Stockholm #Boliden #Zinkgruvan #Somincor

Boliden Secures Long-Term Financing for Somincor and Zinkgruvan Acquisition

In a significant move towards strengthening its operational capabilities, Boliden has finalized the financing arrangement for its acquisition of the Somincor copper and zinc mine in Portugal and the Zinkgruvan zinc mine in Sweden. According to Håkan Gabrielsson, Boliden's Chief Financial Officer, this acquisition is crucial for the company's long-term development strategy. The successful conclusion of the financing aligns perfectly with Boliden's initial intentions when the acquisition was first announced.

The financing consists of a Sustainability Linked EUR 700 million Term Loan, which has a three-year maturity and an option to extend it by an additional two years. The loan was underwritten by a consortium of major banks, including BNP Paribas, Royal Bank of Canada, Skandinaviska Enskilda Banken, ING, Nordea, Danske Bank, DNB, and Swedbank. This diverse backing underscores the confidence the investment community has in Boliden’s strategic vision and operational methodology.

The funds generated from the term loan will be utilized to settle a previous bridge loan that was essential for facilitating the initial phases of the acquisition process. Moreover, this move comes in tandem with an equity raise that Boliden executed in March 2025 and a decision made during the Annual General Meeting in April 2025 to omit dividends for that year. This combination of financial strategies marks the final phase in transitioning from short-term bridge financing to sustainable long-term funding solutions.

Gabrielsson expressed his gratitude towards the extensive support received from various stakeholders including relationship banks and shareholders. This community of support is vital as Boliden continues to navigate through the complexities of the global mining industry, aiming for sustainable practices throughout its operations. The company's ability to secure this financing is a testament to its robust business strategies and commitment to transparent and responsible mining practices.

Boliden's focus now shifts towards integrating the newly acquired mines into its existing operations while maintaining a strong emphasis on sustainability. This includes optimizing resource extraction processes and minimizing environmental impacts, ensuring long-term viability and adherence to corporate social responsibilities.

Looking ahead, Boliden is committed to leveraging the synergies that these acquisitions will create, thus enhancing its competitive positioning in the global market. With a significant stake in mining operations across different regions, the company is poised to contribute effectively to the demands of the ever-evolving resources sector.

As the mining industry faces increasing scrutiny from environmental groups and regulators, Boliden's proactive approach to financing these acquisitions not only secures its operational future but also demonstrates a commitment to sustainable development principles. The successful completion of this financing arrangement marks an important milestone for Boliden as it aims for a more expansive and responsible mining footprint.

In summary, Boliden's acquisition of Somincor and Zinkgruvan represents a critical move toward achieving its long-term strategic goals while maintaining a strong focus on sustainability and community engagement. As the company moves forward, stakeholders will be watching closely to see how these acquisitions enhance Boliden's operational efficiency and market presence in the mining sector.