Long term financing for Somincor and Zinkgruvan acquisition in place

Rhea-AI Summary

Boliden (BDNNY) has secured a EUR 700 million Sustainability Linked Term Loan to finance its acquisition of Somincor copper and zinc mine in Portugal and Zinkgruvan zinc mine in Sweden. The three-year loan, extendable by two additional years, is provided by multiple major banks including BNP Paribas, Royal Bank of Canada, and others. This Term Loan, combined with equity raised in March 2025 and the exclusion of dividend in 2025, completes the take-out financing of the bridge loan agreement, which has now been fully repaid.

Positive

• Secured EUR 700M long-term financing for strategic mine acquisitions
• Strong support from multiple major banking institutions
• Successful completion of take-out financing through combination of term loan and equity
• Sustainability-linked loan structure demonstrates environmental commitment

Negative

• Suspension of dividend payments in 2025 to fund acquisition
• Increased debt burden with new EUR 700M term loan
• Integration costs and risks associated with acquiring two mines simultaneously

News Market Reaction

-2.80%

1 alert

-2.80% News Effect

On the day this news was published, BDNNY declined 2.80%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

STOCKHOLM, May 28, 2025 /PRNewswire/ -- "The acquisition of Somincor and Zinkgruvan is pivotal to the long-term development of Boliden. I am of course very pleased that we now have concluded the financing of the acquisition, fully in line with the intentions at the announcement of the transaction. We are also grateful for the wide support from our relationship banks, shareholders, and other stakeholders", says Håkan Gabrielsson, CFO Boliden.

Boliden has entered into Sustainability Linked EUR 700 m Term Loan (Term Loan) with a three-year tenor with the option to be extended by two additional years in total. The loan is provided by BNP Paribas, Royal Bank of Canada, Skandinaviska Enskilda Banken, ING, Nordea, Danske Bank, DNB and Swedbank.

The proceeds from the Term Loan will be used to repay the bridge loan agreement which was put in place to finance the acquisition of Somincor copper and zinc mine in Portugal and the Zinkgruvan zinc mine in Sweden. Together with the equity raised by Boliden in March 2025 and the exclusion of dividend in 2025, approved by the Annual General Meeting in April 2025, the Term Loan marks the final step in the take-out financing of the bridge loan agreement which now has been fully repaid.

For further information, please contact:
Klas Nilsson
Director Group Communications
+46 70 453 65 88
Klas.Nilsson@boliden.com

This information was brought to you by Cision http://news.cision.com

https://news.cision.com/boliden/r/long-term-financing-for-somincor-and-zinkgruvan-acquisition-in-place,c4155741

The following files are available for download:

https://mb.cision.com/Main/997/4155741/3473260.pdf

Press release

 

FAQ

What is the size and terms of Boliden's (BDNNY) new term loan for the Somincor and Zinkgruvan acquisition?

Boliden secured a EUR 700 million Sustainability Linked Term Loan with a three-year tenor, with the option to extend by two additional years.

Which banks are providing the financing for Boliden's mine acquisitions?

The loan is provided by BNP Paribas, Royal Bank of Canada, Skandinaviska Enskilda Banken, ING, Nordea, Danske Bank, DNB and Swedbank.

Will Boliden (BDNNY) pay dividends in 2025?

No, Boliden has excluded dividend payments in 2025 as part of the financing strategy for the Somincor and Zinkgruvan acquisition, approved by the Annual General Meeting in April 2025.

What mines did Boliden acquire with this financing?

Boliden acquired the Somincor copper and zinc mine in Portugal and the Zinkgruvan zinc mine in Sweden.

How is Boliden funding the Somincor and Zinkgruvan acquisition?

The acquisition is funded through a combination of a EUR 700M term loan, equity raised in March 2025, and the suspension of 2025 dividend payments.