Terrafame has strengthened its financing position

Terrafame has negotiated a financing arrangement to fund the company’s investment programme over the next few years.   

As part of the financing solution, Terrafame and its main owners – Finnish Minerals Group and the Galena funds – have agreed on a EUR 100 million financing arrangement consisting of a EUR 50 million shareholder loan and a EUR 50 million equity financing commitment. In addition, Terrafame has agreed on a EUR 50 million advance payment arrangement with Trafigura.

In the same context, Terrafame has agreed on a one-year extension to the maturity of an existing EUR 250 million bank loan agreement as well as on extending a EUR 65 million revolving credit facility previously received from Finnish Minerals Group for the same period. The new maturity of the bank loan and the revolving credit facility ends in December 2028.

“With these new arrangements, Terrafame will finance its ongoing significant investments, which will secure the continuation of operations far into the future. These arrangements demonstrate our owners’ and Nordic banks’ long-term commitment to and confidence in our business despite the external challenges we have faced”, says Ville Sirviö, CFO of Terrafame.

Terrafame’s shareholder base

At the end of December 2024, Finnish Minerals Group (FMG), a special-purpose company wholly owned by the State of Finland, owned 56.1% of Terrafame, the Galena funds 39.4% and Mandatum Holding Oy 4.5%. The newly announced arrangement does not have a significant impact on the status of ownership.

For further information, please contact:
CFO Ville Sirviö, Terrafame Ltd, tel. +358 20 7130 800 (switchboard), ville.sirvio(at)terrafame.fi

Terrafame enhances low-carbon mobility by delivering responsibly produced battery chemicals to the global battery industry. One of the world’s largest production lines for chemicals used in electric vehicle batteries is located on Terrafame’s industrial site. The plant is capable of producing nickel sulphate for around 1 million EVs per year. The carbon footprint of the nickel sulphate produced by Terrafame is among the smallest in the industry.

Terrafame’s integrated, unique and energy-efficient production process from the mine to battery chemicals is located on a single industrial site. It provides customers with a transparent, traceable and truly European battery chemical supply chain.

Terrafame Ltd was founded in 2015. Its net sales in 2023 were EUR 560.9 million. Around 1,900 people work on its industrial site, slightly over half of whom are employees of partner companies.