Pihlajalinna Plc revamped its long-term debt financing with a sustainability-linked facility

Pihlajalinna Plc Inside information March 22, 2022 at 10:00 a.m.

Pihlajalinna Plc revamped its long-term debt financing with a sustainability-linked facility

At March 22, 2022, Pihlajalinna signed an unsecured five-year contract 200 million euros funding agreement with Danske Bank, OP corporate bank and Swedbank. The financing includes a long-term loan of 130 million euros intended for the refinancing of the Group’s current debt and a revolving credit line of 70 million euros for general financing purposes and acquisitions. The financing agreement also provides for the possibility of increasing the total amount of 100 million euros for 300 million euros, subject to separate decisions on additional borrowing by the lenders. The financing arrangement contains customary financial covenants. The financial package replaces the 120 million euros unsecured financing agreement signed on March 2018which included the possibility of increasing the total amount of 60 million eurossubject to separate decisions on additional borrowing by donors.

The financing lending margin is further linked to the by Pihlajalinna sustainability goals. The margin applied on the loan is partly determined by the achievement by the company of the annual objectives set in the sustainable development strategy in terms of patient satisfaction, employee engagement and access to treatment. If the company achieves its goals, the margin will decrease. If the objectives are not met, the margin of the loan will increase.

– We see sustainability work as an important development area. Our new funding agreement will enable our expansion in line with the strategy in the coming years, and we see it as a good opportunity to link our broader sustainability work to our funding package through transparent indicators and targets, says Joni AaltonenCEO of Pihlajalinna.

Danske Bank was the sole coordinator, sustainability coordinator and syndicated loan officer.

Further information :

Tarja Rantala, financial director, tel. +358 40 774 9290 or [email protected]

Pihlajalinna in short

20 years Pihlajalinna (Nasdaq Helsinki: PIHLIS) is a leading private provider of social, health and welfare services. The Group provides services to individuals, businesses, insurance companies and public sector entities, such as municipalities and intermunicipalities, through Finland. The Group offers general medicine and specialized care services, occupational medicine and dental care services as well as accommodation and well-being services, for example. The Group, in cooperation with the public sector, offers health and social service delivery models to public sector entities with the aim of providing high quality services.

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Carol M. Barragan