Stock Exchange release November 29, 2001 06:15:08 PM CET


Metso Corporation, rated Baa2/BBB+, today launched and priced its debut EUR 500 million bond offering. The launch and pricing of the deal follow an extensive 4-day roadshow in Europe.

Metso's bond offering was succesfully placed with over a large number of high quality European institutional investors, thereby meeting the Company's funding objectives. Strong participation was seen especially from German, UK and Scandinavian investors.

The maturity of the offering is December 11, 2006. The issue was priced at a re-offer spread of 200 bps versus mid-swaps, and pays a coupon of 6.25%.

Bookrunner on the transaction was Schroder Salomon Smith Barney.

As previously communicated, the issue is intended for the refunding of certain of the company's bank loans set up for the acquisition of Svedala earlier this year.

Metso Corporation is a global supplier of process industry machinery and systems. Metso's core businesses are divided between Metso Paper (fiber and paper technology), Metso Minerals (rock and mineral processing) and Metso Automation (automation and control technology). In 2000, the net sales of Metso Corporation were EUR 3.9 billion, and the personnel totaled approximately 22,000. Metso Corporation is listed on the Helsinki and New York Stock Exchanges.

Metso completed its offer for Svedala Industri AB on September 14, 2001. Svedala is a global supplier of products and services for rock and mineral processes. Metso's and Svedala's combined net sales are approximately EUR 5,400 million (in 2000) and the amount of personnel is approximately 32,000.

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