HELSINKI (Reuters) - Finnish battery chemicals maker Terrafame said on Thursday it has raised 100 million euros ($104.72 million) in equity and shareholder loans, and secured an extension of the
Terrafame Secures €100 Million to Boost Battery Chemicals Investment
HELSINKI (Reuters) - Finnish battery chemicals maker Terrafame said on Thursday it has raised 100 million euros ($104.72 million) in equity and shareholder loans, and secured an extension of the maturity of its bank loans and credit facilities.
Terrafame has seen declining sales and negative cash flow in recent quarters amid a slowdown in demand for battery-powered vehicles in Europe, and last year announced layoffs.
The cash now raised from its main owners, Finnish Minerals Group and the Galena funds managed by commodities trading giant Trafigura, will fund the company's investment programme over the next few years, it said in a statement.
Separately, Finland's government announced on Thursday that it had injected 30 million euros into the fully state-owned Finnish Minerals Group, enabling the company to bolster the finances of Terrafame where it holds a 56.1% stake.
Terrafame operates a multi-metal mine and production facilities in Sotkamo in central Finland.
Finnish Minerals Group and the Trafigura fund will inject 50 million euros of equity as well as a 50 million euro shareholder loan, while bank loans and credit facilities of 315 million euros were extended by one year to late 2028, Terrafame said.
The funds will finance ongoing significant investments and secure the continuation of operations far into the future, it added.
"These arrangements demonstrate our owners' and Nordic banks' long-term commitment to and confidence in our business despite the external challenges we have faced," Terrafame Chief Financial Officer Ville Sirvio said in the statement.
($1 = 0.9549 euros)
(Reporting by Isabelle Yr Carlsson; Editing by Terje Solsvik and Frances Kerry)
