The financing which has been arranged through Bank of Scotland Corporate (BSC) represents a major milestone for the Waste & Resources Action programmes (WRAP) eQuip Residual Value Guarantee (RVG) scheme.
Its director of business growth Steve Creed said: The eQuip scheme has been an unqualified success with recyclers since it was introduced just three years ago. It has secured £16 million investment for UK companies to date, but this is the first time that the scheme has completed investments in Northern Ireland.
We are delighted that we have been able to make such a significant contribution in the province.
The first company to benefit is Irish Recycling Services which operates a materials recycling facility in Belfast that accepts waste from construction and demolition sources as well as council amenity sites.
It has secured £637,000 for a new screener, separator and conveyor belt, while ISL Waste Management of Mallusk, County Antrim is the second beneficiary.
The company which sorts paper, cardboard and plastic has secured finance for a new sorting line to increase its processing capacity to 18,000 tonnes per year.
Unique to the recycling sector, the eQuip RVG scheme helps to secure funding for growth by guaranteeing the future residual value of leased recycling equipment.
Historically, bank or lease finance providers have been reluctant to provide leases for new and specialist technologies, but with the residual value underwritten by eQuip, the schemes ten finance providers are more comfortable about providing lease deals on recycling equipment.
BSC associate director Chris Cresswell said: Operating in environmental industries can often require the use of new technologies that have yet to be proven. This can often present a barrier for entry to companies who may have difficulties finding lenders willing to invest in new and relatively unproven technologies, due to the risky nature of calculating the machinerys residual value at the end of the lease period.
At BSC we like to look at things differently, which is why we are delighted to be working alongside WRAPs eQuip initiative. We believe that the scheme is an important catalyst for key investment for businesses in the fast expanding recycling sector.