Stora Enso Oyj - Company Announcement

Stora Enso strengthens co-operation with IFC in Guangxi, China

IFC to invest RMB 356 million (EUR 43 million) of equity to Stora Enso's
Consumer Board Mill 

Helsinki, Finland, 2014-02-28 08:00 CET (GLOBE NEWSWIRE) -- STORA ENSO OYJ
STOCK EXCHANGE RELEASE 28 FEBRUARY 2014 at 9.00 EET 

Stora Enso is strengthening its partnership with International Finance
Corporation (IFC)as part of developing its state-of-the-art plantation, board
and pulp mill project in Guangxi, China. IFC has agreed to invest in an equity
stake of RMB 356 million (EUR 43 million) in the project, representing a 5%
shareholding in the project. Stora Enso will continue to own 83% of the
project, with the remainder owned by Guangxi Forestry Group Co. Ltd and Beihai
Forestry Investment & Development Company Ltd. 

In addition, Stora Enso is in the final stage of concluding the long-term
external financing for the first phase development of the project. The USD 460
million funding package will be provided under an IFC syndicate loan structure.
It consists of a USD 88 million loan with twelve years tenor from IFC and a USD
372 million loan with eight years tenor provided by commercial banks through
IFC. The funding package is expected to be obtained at an average interest rate
of LIBOR +2.40%. 

IFC has been supporting Stora Enso in Guangxi with a similar loan structure
since 2005, and the long-term funding package is expected to replace the
existing financing. 

“We welcome the continued support from IFC. This shows the quality of the work
we are doing in Guangxi,” says Mats Nordlander, Executive Vice President, Stora
Enso Renewable Packaging. 

Stora Enso's investment project is divided into two phases. The first phase is
to build a board machine to be ready in the beginning of 2016. The pulp mill
will be constructed in the second phase and started up when the board machine
is operational. The operations will supply customers with renewable material
for products addressing the growing consumer market in China. This includes
food, beverage and confectionary packaging. 

A strong sustainability agenda is an integral component of the IFC engagement.
The agenda includes for example livelihood development, world class
environmental standards, and health and safety issues in the industrial and
forestry operations. 

Stora Enso employs some 1 100 people in Guangxi, and when the integrated mill
is in operation the number of employees will be about 2 000. 

The investment is pending conclusion of condition precedents as customary for
this type of transaction. 

For further information, please contact:
Mats Nordlander, Executive Vice President, Stora Enso Renewable Packaging, tel:
+46 1046 72703 
Ulla Paajanen-Sainio, SVP, Head of Investor Relations, Stora Enso Oyj, tel.
+358 40 763 8767 
Tommy Borglund, SVP Communications, Stora Enso Renewable Packaging, tel: +46
1046 71709 


www.storaenso.com
renewablepackaging.storaenso.com


Stora Enso is the global rethinker of the paper, biomaterials, wood products
and packaging industry. We always rethink the old and expand to the new to
offer our customers innovative solutions based on renewable materials. Stora
Enso employs some 28 000 people worldwide, and our sales in 2013 amounted to
EUR 10.5 billion. Stora Enso shares are listed on NASDAQ OMX Helsinki (STEAV,
STERV) and Stockholm (STE A, STE R). In addition, the shares are traded in the
USA as ADRs (SEOAY) in the International OTCQX over-the-counter market. 

STORA ENSO OYJ