Preem signs SEK 3 billion loan agreement with Swedish Export Credit Company
STOCKHOLM, April 25, 2022 PRNewswire/ — As part of the strategy to shift to large-scale production of renewable fuels, Preem will sign a 3 billion Swedish crowns loan agreement with the Swedish Export Credit Corporation (SEK). The loan is backed by the Swedish National Debt Board’s Green Credit Guarantee Scheme.
This is the first guarantee the Swedish National Debt Board has issued under the central government’s green guarantee scheme and aims to fund Preem’s planned major investment in the Lysekil refinery for the production of biodiesel. based on renewable raw materials. The production of biodiesel will play a central role for the transport sector in the future and will contribute to increasing Swedish self-sufficiency in biofuels.
“Preem is making the biggest transition in company history, and currently a number of crucial projects are underway at our refineries that will transform us into a climate-neutral company. The loan will allow us to accelerate our investments and ensure a growing supply of sustainable biofuels for the Swedish transport sector,” says Lina StolpeCFO at Preem.
The total investment cost of Preem is 3,525 million Swedish crowns and the company will receive a green loan of 3 billion Swedish crowns. The term of the loan is 7 years and is guaranteed by the Swedish National Debt Board with a green credit guarantee which covers 80% of the loan amount.
“Reducing the impact of climate change is one of the most important challenges of our time. Preem’s funding is part of SEK’s investment to support industry transition and competitiveness exporting, and reach Sweden high climate ambitions,” says Magnus MontanCEO of the Swedish Export Credit Company (Svensk Exportkredit).
The loan is intended for investment in the Lysekil refinery as part of the reconstruction of the so-called Synsat plant, which today produces diesel. The purpose of the reconstruction is to increase the production of biofuels from Preem up to 950,000m3 annually, which will reduce fossil carbon dioxide emissions at the user level by at least 1.7 million tonnes per year.
To be able to benefit from the government’s green credit guarantees, it is necessary that the investments contribute to Sweden environmental and climate goals.
The loan agreement with SEK is conditional on the approval of other external financiers of the Preem group and on Preem obtaining the necessary environmental permits. Decisions on environmental permits for the project are made by the Swedish Land and Environmental Court.
For more information please contact:
Preem press office
+46 (0)70-450 10 01
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SOURCE Preem AB