Tornator Oyj issues EUR 300 million green rated notes

Tornator Oyj
Other information disclosed according to the rules of the Exchange

Tornator Oyj issues EUR 300 million green rated notes

Tornator Oyj, Stock Exchange Release, 10 October 2024 at 17.00

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, HONG KONG, JAPAN, NEW ZEALAND, SINGAPORE, SOUTH AFRICA OR ANY OTHER JURISDICTION IN WHICH THE RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL.

Tornator Oyj ("Tornator") issues inaugural rated senior secured green notes in the aggregate principal amount of EUR 300 million (the " Notes"). The Notes will mature on 17 October 2031 and carry a fixed annual interest of 3.75 per cent. The issue date for the notes will be on 17 October 2024. The Notes are issued in accordance with Tornator's green finance framework published in April 2023 (the "Framework"). Moody's Ratings has assigned a Baa3 (stable outlook) credit rating to the Notes.

The Notes are secured by certain forest properties owned by Tornator which form a dynamic security pool that secures also Tornator's other secured indebtedness.

Tornator shall use the net proceeds from the issue of the Notes in accordance with the Framework towards, among other things, the prepayment of a EUR 200 million green bank loan made available under Tornator's existing loan arrangements and maturing in March 2026.

"This newly issued green bond is a great testament to Tornator's long-term efforts. Sustainable forestry results in strong and stable financial performance and ensures the high collateral value of Tornator's forests. These factors, combined with the Investment Grade credit rating from Moody's and the trust of investors, led to a very successful transaction. It was especially great to see the strong participation of foreign investors. Long-term financing is naturally an excellent fit with the nature of Tornator's business and allows for more flexible planning of future refinancing", says Antti Siirtola, Tornator's Chief Financial Officer.

Tornator will submit an application to have the Notes listed on the official list of sustainable bonds of Nasdaq Helsinki Ltd.

Danske Bank A/S, OP Corporate Bank plc and Skandinaviska Enskilda Banken AB (publ) act as Joint Lead Managers for the issue of the Notes (the "Joint Lead Managers"). OP Corporate Bank plc acted as Tornator's rating advisor.

For further information, please contact:

CFO Antti Siirtola, tel. +358 40 773 0975

www.tornator.fi/en

Tornator is a leader in sustainable forestry in Europe. It owns forests in Finland, Estonia and Romania. In 2023, the group's turnover was approximately €195 million, and the balance sheet value was about €3.6 billion. The group has around 190 employees. Tornator's own employees, and other companies and their employees working on its forestland, add up to around 1,600 person-years of employment. The owners of the parent company are Finnish, mainly institutional investors. Tornator's mission is to generate sustainable wellbeing from forests.

Important information

This release is for information purposes only and is not to be construed as an offer to purchase or sell or a solicitation of an offer to purchase or sell with respect to any securities of Tornator. The distribution of this release and the related material concerning the issuance of the Notes may, in certain jurisdictions, be restricted by law. No actions have been taken to register or qualify the Notes, or otherwise to permit a public offering of the Notes, in any jurisdiction. Any offering material or documentation related to the Notes may be received only in compliance with applicable exemptions or restrictions. Persons into whose possession this release or any such offering material or documentation may come are required to inform themselves of and observe all such restrictions. This release and any such offering material or documentation may not be distributed or published in any country or jurisdiction if to do so would constitute a violation of the relevant laws of such jurisdiction or would require actions under the laws of a state or jurisdiction. In particular, this release and any such offering material or documentation may not be distributed in the United States, Australia, Canada, Hong Kong, Japan, New Zealand, Singapore or South Africa and any related material concerning the issuance of the Notes may not be sent to any person in the before mentioned jurisdictions.

The Notes have not been, and will not be, registered under the U.S. Securities Act 1933, as amended (the “Securities Act”) or with any securities regulatory authority of any state of the United States. The Notes may not be offered, sold, pledged or otherwise transferred directly or indirectly within the United States or to, or for the account or benefit of, U.S. Persons (as defined in Regulation S under the Securities Act (“Regulation S”)), except to a person who is not a U.S. Person (as defined in Regulation S) in an offshore transaction pursuant to Regulation S.

The information provided in this release and any offer materials relating to the Notes is addressed to and directed at persons in the United Kingdom only in circumstances where provisions of section 21of the Financial Services and Markets Act 2000, as amended, do not apply and are solely directed at persons in the United Kingdom who (a) have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") or (b) persons falling within Article 49(2)(a) to (d) of the Order, or other persons to whom they may be lawfully communicated (all such persons together being referred to as “relevant persons”). This release is directed only at relevant persons and any person who is not a relevant person must not act or rely on this release or any of its contents.