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Tornator arranges its long-term interest rate hedges

·2-min read

Tornator Oyj - Stock Exchange release 4 June 2021 at 3.00 PM EET

Tornator arranges its long-term interest rate hedges

Forestry company Tornator arranges its long-term interest rate hedges by terminating part of its existing interest rate hedges and replacing them with new long-term interest rate hedges. Interest rate swaps that will be partly terminated will mature in 2031 and 2047 and terminated contracts will be replaced by new 20-year interest rate swaps, under which the interest rate hedge period will begin in 2028. The now agreed arrangement will be executed during June 2021. Both the remaining old contracts and the new ones contain market-based conditions for early termination, according to which contracts can be terminated in 2028 at the earliest for no particular reason.

As a result of the arrangement, Tornator's financing costs will decrease and the long-term hedged fixed interest rate will be significantly lower. The lower hedged interest rate level implements the company's long-term interest rate hedging strategy, which aims to reduce the interest rate risk in the balance sheet, which mainly consists of long-term changes in the discount rate used in forest valuation. Balance sheet effects include decrease in the negative fair value of derivatives and increase in interest-bearing liabilities.


For further information, please contact:

CFO Antti Siirtola, tel. +358 40 773 0975


www.tornator.fi

Tornator is a leading company specialised in sustainable forestry in Europe. It owns forests in Finland, Estonia and Romania. In 2020, the Group’s net sales were some €118 million, and the balance sheet value was about €2.0 billion. The Group has around 180 employees. Tornator's own employees, and other companies and their employees working on its forestland, add up to around 1,000 person/years of employment. The owners of the parent company are Finnish, mainly institutional investors. Tornator's mission is to generate sustainable well-being from forests.