Stora China

completed

Stora Enso Oyj (Stora Enso or the sponsor), the world’s largest paper and board producer in produced tonnes and number three sawn timber producer, has approached IFC for a loan facility to finance the development of its timber plantation and related investments in China. China is the second largest and fastest growing paper market in the world, yet it is critically short of timber/fiber. China accounts for over 1/3 of the total increase in global paper capacity for the period 2001-2006, however the country’s short supply of fiber has led it to import unsustainably harvested fiber from neighbors such as Russia or the Pacific Rim. Stora Enso’s current projects in China include expanding its plantation in the Guangxi province of Southern China, which began operating in 2002 as well as a paper mill in Suzhou, which was acquired by Stora Enso in 1998. Stora Enso plans to further develop both operations, with an immediate financing need to help development of their plantation. These investment projects, combined with Stora Enso’s other possible investment projects in China comprise an estimated $125 million investment program over the next five years. Stora Enso has thus requested IFC for a flexible debt facility for to help it with its investment program financing needs.