Half-a-billion-euro financing package to support future growth
Adven’s brisk investment pace to continue in near future
Adven has signed long-term agreements with international financiers. The new financing arrangement of around EUR 500 million ensures that major investments can be made in the next few years even if the economy takes a turn for the worse.
“From the company’s perspective, it is very positive that we reached an agreement on the refinancing at this time. It provides systematic visibility to the business and to our ability to invest even in a challenging economic scenario,” says Juhani Sillanpää, Adven’s Chief Strategy Officer.
The refinancing covers the share of outside capital in full, and the package of around EUR 500 million consists of some EUR 350 million in loans already in use and a capex and liquidity limit of some EUR 150 million. Previously, Adven had bank loans following M&A arrangements, while now the loans have been diversified across a wider range of players, including international banks, world-class insurance and pension companies and large companies’ holding companies.
The financing package loan periods range from 7 to 15 years and the loans have been tied to the interest rate level, which lowers Adven’s financing costs.
“Lower costs are great for Adven’s profitability, although this was not the primary reason for the financing arrangement. The financing package increases Adven’s credibility and reliability further and allows us to show our large industrial customers that we are worthy of their trust, given the fact that the world’s largest financiers also have faith in us,” says Sillanpää.
The financing will keep Adven on its growth path through both organic growth and mergers and acquisitions. According to Sillanpää, the company is poised to continue investing tens of millions of euros per year also in the upcoming years.