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."