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Renewi extends bank facility into 550m green loan
Waste-to-product company Renewi has signed an amendment and extension to its main banking facility, converting it into a 550m Green Loan as a result.
The facility has been extended through to May 2023, with options to extend into 2025, and has been structured so as to allow future green bonds and green debt placements to be issued under the same Green Framework.
Renewi, which is wholly focused on sustainability, with the vast majority of its assets classified as "green" as they support "pollution prevention and control", is one of the first FTSE 250 companies to refinance its entire bank borrowings using the ICMA Green Bond Principles and the LMA Green Loan Principles.
The facility will introduce sustainability improvements into the terms of Renewi's borrowing facility, allowing it to benefit from a lower margin payable on its borrowings in the event that it increases in recycling and recovery rates, grows in carbon avoidance, increases in fleet efficiency, transitions to a low polluting Euro VI fleet or sees a successful reduction in the three day accident rate.
The green facility has been financed by Renewi's six relationship banks - ABN, BNPPF, HSBC, ING, KBC and Rabobank.
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," he added.
As of 1120 BST, Renewi shares had dipped 0.14% to 70.30p.