Baltic Sea shipper Tallink has signed a syndicate contract one part of which will see it return a loan of €100 million the company got from the Estonian government during the 2020 coronavirus restrictions.
The group's syndicate loan contract will see it refinance the loan balances of several important loans from past years.
"The most important loan repayment from where the Estonian state is standing concerns a loan of €100 million from the KredEx agency to Tallink during the Covid pandemic in 2020. Tallink has paid KredEx €8.9 million in interest over the past three years to which one-off contractual fees will be added," a press release said.
Tallink will also be repaying a loan it got from the Nordic Investment Bank in the fall of 2020, also worth €100 million, as well as reducing many prior loan obligations.
"We are glad to report that our recent years' efforts have been fruitful and that we are now in a situation where we can start liquidating loan obligations from crisis years," group CEO Paavo Nõgene said, adding that Tallink is grateful for the support it received from the Estonian and Finnish governments.
Nõgene remarked that the KredEx and NIB loans were key to ensuring Tallink's sustainability during the difficult period.
"These state guarantee loans boosted our credibility in the eyes of other financers and helped our partners believe in our future and recovery. We are grateful for the trust and have worked very hard over the last four years to repay the loans as soon as possible," Nõgene said.
Tallink Grupp repaid €110 million worth of loans in 2022 and has repaid €175 million worth so far this year.
Editor: Marcus Turovski