OREANDA-NEWS. April 06, 2011. SORAINEN Estonia advised a consortium of leading Estonian and Finnish banks, including SEB Bank, Nordea Bank and Pohjola Pankki, on financing Viru Keemia Grupp, Estonia's largest oil shale processing company. Syndicated financing amounts to EUR 253 million, with up to EUR 90 million earmarked for opening a new oil shale mine. To date, this is the biggest loan transaction in Estonia, reported the press-centre of SORAINEN.

Our advice included drafting and negotiating all financing documentation including the Estonian law-governed facility agreement, intercreditor and subordination agreement and security documents. The facility agreement was drafted on the basis of the Loan Market Association (LMA) standard facilities agreement, the first time in Estonia that a post-crisis LMA standard facilities agreement was adjusted to comply with Estonian law.

In addition to being leading-edge, the facility agreement was complicated as it included several financing products. The team also issued a legal opinion on the capacity and authority of the borrower and the validity and enforceability of the financing documentation.

Since signing of the financing documentation in summer 2010, SORAINEN has advised the consortium on drafting amendments such as increasing the sum borrowed, accession of a new obligor plus amending and supplementing the security package.

The case was handled by partner Reimo Hammerberg, senior associate Jane Eespold and associate Helen Ginter.