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Construction company YIT has secured a new loan of 140 million euros from banks to replace current loans totaling 150 million euros that are due at the end of the year and next spring. The new loan has a maturity date of April 2025.

The loan agreement contains financial covenants and restrictions on the distribution of funds based on YIT’s net liabilities and EBITDA ratio. These covenants will be regularly reviewed, either monthly or quarterly, to ensure compliance.

Due to the company’s currently tightened financial situation, YIT has decided not to propose a profit distribution at the next general meeting in March. This decision was made to strengthen the company’s financial position and increase its financing structure’s flexibility, according to CFO Tuomas Mäkipeska.

YIT’s financial situation has been affected by the housing market slowdown, preventing the company from selling newly constructed apartments. As a result, the company’s gearing ratio increased to one hundred percent in the third quarter. Despite this, the company’s board of directors decided to distribute the second dividend installment of last year’s results to shareholders in September.

To reduce its indebtedness and improve capital utilization, YIT has implemented a change program totaling around 400 million euros by the end of next year. The coordinators and main organizers of the new loan agreement are OP Yrityspankki and SEB, with Swedbank participating as the third main organizer.

By Editor

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