Securitizability.com

ALLEN & OVERY ADVISES ON GROUND-BREAKING SECURITISATION FOR SCANDINAVIA

International law firm Allen & Overy advised lead manager and arranger Morgan Stanley on the securitisation of forest land and felling rights from Finnish integrated forest products company Stora Enso.

This ground-breaking transaction brings a new asset class to the whole business securitisation sector and to the Scandinavian structured finance market in which Allen & Overy has unmatched experience.

Stora has transferred approximately 600,000 hectares of Finnish forestland to a newly created operating company, Tornator Oy, and retains a non-majority interest in the company. Institutional investors have invested in the remaining shares and another new company in the Tornator Group has issued three classes of asset-backed bonds to finance the acquisition.

The notes were issued from special purpose vehicle Tornator Finance plc incorporated in Ireland.

A&O securitisation partner Julian Tucker led the Allen & Overy team and was assisted by associates Ben Marson and David Leeming. Partner Paul Bedford assisted by Wendy Hewer advised the Trustee and Cash Manager, whilst partner Simon Roberts assisted by Greta Burkett advised on funding loan issues.

White & Case (London and Helsinki offices) advised Stora Enso and the Tornator Group as to Finnish and English law, whilst McCann FitzGerald advised in relation to Irish law issues.

Commenting on the transaction, securitisation partner Julian Tucker said:
"We are delighted to have structured and developed this groundbreaking securitisation with Morgan Stanley. Scandinavian, and particularly Finnish, securitisations are rare and I believe the techniques employed here can be exported in many other jurisdictions with appropriate modifications. We were able to bring our experience of over 10 years in Scandinavian and my over 7 years experience of Finnish transactions to bear in successfully completing this challenging and interesting project. It once again demonstrates how securitisation techniques can be employed in the corporate finance sector."

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