1. There are clear indications that growth is improving after a long downturn. We have kept our balance sheet strong to buffer the uncertainty. Now, when demand and our order stock is improving, we have been buying back shares and re-structuring the loan portfolio to longer maturities.
2. Hybrid capital products have developed during recent years: lower spreads, increased issue size and higher equity credit from rating agencies. Stora Enso’s strong financial position does not require any hybrid capital support. Convertible bonds are offering attractive yields, but we are worried about the dilution effect to our shareholders.
3. We have had bitter experiences of offshoring transactions (cross-border leases) and that makes us cautious of any offshore structure that is based mainly on tax-structurings.
Offshoring operations into lower cost locations can create cost savings. The controlling and reporting issues are obviously becoming even more important when operating offshore and the increased administration often increases expenses.
