Insight & Analysis

Press release: Renewi plc renews existing €550m banking facilities within innovative long term Green Framework

Published: May 2018

22nd May 2018 – Renewi plc, the international waste-to-product company, today announces that it has signed an amendment and extension to its main banking facility, thereby converting it to a €550m Green Loan.

Renewi is wholly focused on sustainability, with the vast majority of its assets classified as “green” as they support “pollution prevention and control” as defined in the ICMA Green Bond Principles and the LMA Green Loan Principles. Renewi is one of the first FTSE 250 companies to refinance its entire bank borrowings using this green certification.

The facility is also one of the first to introduce sustainability improvement into the terms of the borrowing facility. Accordingly, Renewi will benefit from a lower margin payable on its borrowings in the event that it achieves each of five ambitious sustainability objectives. These are:

  • Increases in Recycling and Recovery Rates;
  • Growth in Carbon Avoidance;
  • Increase in fleet efficiency, reducing emissions;
  • Transition to a low polluting Euro VI fleet; and
  • Ongoing reduction in the 3 day accident rate.

The specific measures for each of the targets will be disclosed in Renewi’s annual Corporate Social Responsibility (CSR) Report which will be published on the Company’s website on 11 June.

The €550m facility has been extended to May 2023 with options to extend into 2025. It is structured so as to allow future green bonds and green debt placements to be issued under the same Green Framework.

The innovative green facility has been financed by Renewi’s six relationship banks: ABN, BNPPF, HSBC, ING, KBC and Rabobank. This strong endorsement from the banks, demonstrates their continued support of Renewi and broader support for the circular economy by rewarding companies that contribute positively to the environment. This funding support directly enables Renewi to make incremental investments to achieve its sustainability targets.

Toby Woolrych, Chief Financial Officer at Renewi, said:

“We are delighted with this green conversion of our banking facilities with our six banks and to do so using this innovative and ground-breaking Green Framework. This facility secures our funding for the long term and demonstrates that our focus on sustainability is matched with our approach to financing. This summer we will be committing to ambitious new sustainability objectives and this facility ensures that by giving new life to used materials we can also reduce the costs of our funding.”

Leonie Schreve, Head Sustainable Finance from ING, said:

“Renewi is a “Pure Play” sustainability focused company and virtually all its assets and operations are “Green”. Sustainability is an important strategic priority for ING and we are very proud to support Renewi to align its financing operations with its core business by formulating a Green Framework which serves as an umbrella for Renewi’s current syndicated facilities and future debt issuances. Furthermore, as Renewi is stepping up its already high sustainability standards by setting even more ambitious sustainability targets, it will be rewarded by a margin reduction when these targets are met.”

ING and ABN acted as sustainability coordinators for the transaction.

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