Raute Oyj announced a private placement of convertible perpetual junior loans for gross proceeds of €4 million on May 22, 2023. The transaction will include participation from new investors, Lähitapiola Yritysrahoitus I Ky and Veritas Pension Insurance Company Ltd. for up to €2 million each. The junior loans are available to be drawn down until June 27, 2023 provided that the company has by then been able to raise equity in the aggregate gross amount of €10 million.

The company has a right, but not an obligation, to repay the loans on the date falling 36 months from the date of the drawdown or any interest payment date thereafter. The first interest period of begins on the date of drawdown of the loan and ends on the date prior to the date on which three years has passed from the drawdown date. The second interest period shall begin from the date on which three years has passed from the drawdown date to the date preceding the date on which the principal amount of the loan and the interest accrued on the loan have been repaid in full.

The annual floating rate during the first interest period is 7.50% added with six months EURIBOR. The annual floating rate during the second interest period is 12.50% added with six months EURIBOR.