Waste management firm Renewi has extended its borrowing from €550m to €575m (£498m to £520.5m) and in doing so diversified its funding.
In May the company announced that it would be refinancing €550m of its bank borrowing into a ‘green loan’, which uses a mechanism whereby a lower interest rate is charged for meeting agreed environmental criteria.
The latest addition – a Green European Private Placement (EUPP) – has been completed with a Dutch asset manager, and is split into a €15m, five-year deal and a €10m, seven-year deal.
Renewi has also introduced a green operating lease programme. By next spring, 90% of its fleet will be Euro 5 or 6 trucks, which are ’best-in-class’ for reducing exhaust pollutants and emissions.
Chief financial officer Toby Woolrych said: “We are delighted to create these additional facilities to add to our portfolio of green finance.
“The funds raised will support our long-term strategy for investment, and provide additional liquidity in anticipation of the redemption of our Belgian retail bond next year.
“We are committed to applying our green proceeds to future investments supporting the circular economy.”