Toivo Group has terminated the EUR 60 million unused financing agreement concluded with the European Investment Bank (EIB) at the beginning of 2023 as unnecessary. In practice, the loan could not even be withdrawn due to the financial ratio conditions.
Originally, the purpose of the agreement was to finance Toivo’s long-term ownership of energy-efficient residential buildings, as well as to replace some current long-term loans. In March 2023, the company said that the contract was intended to support the construction of a total of more than 700 apartments in Finland.
According to the press release published today, due to the change in Toivo’s strategy, no reason was seen to extend the contract.
“Furthermore, the agreement has included certain special conditions included in the financial indicators, as well as collateral arrangements, which are currently not fulfilled, as a result of which the credit cannot be withdrawn without a renegotiation of the conditions,” the release states.
Toivo’s CEO Markus Myllymäki says in the press release that the EIP agreement was negotiated and concluded in different market conditions and for the needs of a different strategy.
“The termination of the agreement will not affect the financing of Toivo’s ongoing or developing projects, but we will use the most suitable form of financing and financing partner for each new project,” says Myllymäki.
Myllymäki said in the May business review that the company limited investments in a falling market. He promised to initiate investments in the emerging market before others.