Scandi Standard has reached an agreement with a syndicate of banks on the main terms and conditions for a new sustainability-linked bank loan in an amount of approximately SEK 3,200 million. The bank loan is conditional upon entering into a binding facilities agreement. The purpose of the bank loan is to, inter alia, refinance the group's existing bank financing and secure a robust, flexible and long-term financing tailored to match the group's ambitions for organic and strategic growth.

The bank loan will comprise a SEK 1,000 million multicurrency term loan facility, a SEK 1,100 million multicurrency revolving credit facility and a EUR 95 million single currency revolving credit facility. Provided that relevant lenders approve, there is an option to further increase the borrowed amount under the bank loan by an amount of up to SEK 1,500 million (or the equivalent in other currencies). The terms of the bank loan will generally be consistent with Scandi Standard's existing bank financing and will, inter alia, require Scandi Standard to achieve an interest coverage ratio of at least 3.50:1 and ensure that the leverage ratio does not exceed a maximum of 4.00:1. From the fifth year, the leverage ratio must not exceed 3.00:1. The bank loan also includes an option to, subject to the approval of the lenders, increase the permitted leverage ratio for a period of twelve months following an acquisition.

Such option may be used two times during the term of the bank loan. As a result of the new bank financing, Scandi Standard will incur bank and legal fees totaling approximately SEK 17 million, which will be amortized over the tenor of the bank loan. The bank loan is provided by ABN Amro, Bank of Ireland Group plc, DNB and Rabobank.

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