UPM-Kymmene hopes to raise a 1.53bn (E2.5bn) loan to finance its acquisition of German paper producer Haindl Paper (PrintWeek, 1 June).


The Finnish papermaker will meet the remainder of the acquisition price of 2.1bn with the proceeds of a 300m share issue, which is conditional on completion of the takeover.


The group will seek shareholder approval for the deal at its AGM on 2 August.


The loan is being arranged by BNP Paribas, Commerzbank, JP Morgan and Nordea and will cover the cash element of the bid and refinance existing debt.


Meanwhile, UPM-Kymmene is set to rebuild paper machine eight at its Tervasaari plant. The year-long operation will see capacity of release paper at the plant increasing from 130,000 tonnes to around 180,000 tonnes a year.