Construction company YIT has announced that it has secured a new loan of 140 million euros from banks. This loan will allow the company 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.

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.

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

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

Overall, this new loan will provide YIT with much-needed funds to replace current loans that are due at the end of