The extension of the 750 million euro credit facility, which has been extended from 2016 to 2019, is expected to reduce the cost of the facility’s funding.
“The agreement includes an option to extend the facility for an additional year at both the first and second anniversary of the agreement with each bank’s approval,” Mondi said in a statement.
[DATA MND:Mondi plc] is global packaging and paper group with key operations in South Africa, central Europe, Russia and the Americas.
(READ MORE: Mondi acquires Graphic Packaging’s kraft business)
The mandated lead arrangers for the facility includes Barclays Bank plc, BNP Paribas, Commerzbank AG, Deutsche and HSBC Bank plc.
“We are delighted with the confidence shown in the Mondi Group by having all our relationship banks agree to continue their support for the next five years. This transaction reinforces the financial strength of the Group by extending our debt maturity profile in a cost effective manner,” Andrew King, Mondi CEO, said in a statement.