The Tallink Grupp has signed a refinancing agreement for the company’s syndicated loan.
As a result, the company will repay several significant loans taken out in recent years.
For example, the €100 mill loan provided to the shipping company in 2020 by SA KredEx with an Estonian Government warranty and a €100 mill loan provided by the Nordic Investment Bank in the same year with a Finnish state guarantee.
Both loans were described as of crucial importance for the company’s future and sustainability at the time when the first Covid pandemic halted most of the company’s operations and activities.
“I am pleased that the significant efforts of everyone at Tallink Grupp over the last four years have started to yield results, and today we are in a financial position where we can finally begin to reduce the loan obligations incurred during the crisis years.
“These loans were vital for us at the time when we had to fight for the survival and future of our company on a daily basis, and we are very grateful to both the countries of Estonia and Finland, the Ministry of Finance in Finland and the governments of these difficult years for their support and trust in us when we needed it the most,” Paavo Nõgene, Tallink Grupp CEO, (pictured) said.
According to Nõgene, the loans from KredEx and Nordic Investment Bank were of decisive importance in ensuring the sustainability of the company in 2020.
“The state-guaranteed loans provided the much-needed additional assurance and credibility to our other financial partners, and strengthened their faith in our future and recovery. We are grateful for this trust, and in return, we have worked extra hard for the last four years to ensure we pay back the loans to our respective countries as soon as possible,” Nõgene explained.
Tallink Grupp has consistently reduced its debts in recent years, repaying various loans totalling €110 mill in 2022 and $175 mill in 2023.