PROJECTS: Averda secures $148mln refinancing inclusive of green loan

Refinancing included $30mln HSBC green loan

Photo used for illustrative purpose only. A general view of a new waste-to-energy plant in Acerra, near Naples, March 26, 2009. REUTERS/Ciro De Luca

Photo used for illustrative purpose only. A general view of a new waste-to-energy plant in Acerra, near Naples, March 26, 2009. REUTERS/Ciro De Luca

REUTERS/Ciro De Luca

Dubai-headquartered global waste and recycling company Averda said on Wednesday that it has successful refinancing of its $148 million term loan, including a $30 million green loan from syndicate leader HSBC

In the Middle East, the company operates in the UAE, Saudi Arabia, Oman, Qatar and Morocco. 

The refinancing, which replaces the previous term loan which was due to expire in 2023, has been secured on a five-year tenor at a 4.5 percent coupon with the six-bank syndicate, which also includes First Abu Dhabi Bank (FAB), Bank ABC, Gulf International Bank (GIB), Citi and Commercial Bank of Dubai (CBD), Averda said in a press statement. 

“We are pleased to announce the refinancing of our term loan, which meaningfully improves Averda’s balance sheet and overall capital structure,” said Samir Sharma, Averda’s Chief Financial Officer. “This will support us as we continue to pursue our strategy, which involves further expansion into Asia and growth in sustainable waste management technologies, which we intend to achieve both organically and through bolt-on and transformational M&A.” 

The statement said the loan would be used to support Averda’s existing sustainable waste management projects, especially its blending platform in South Africa, which processes hazardous waste into refuse derived fuel, and the design and implementation of integrated waste recycling and treatment facilities across the Group. 

The statement noted that the $30 million green loan portion reflects Averda’s role in bringing sustainable waste management and waste-to-energy technology to developing economies seeking to balance economic growth with combating climate change and transition to a more circular economy. 

Abid Mukhi, HSBC’s Head of Structured Finance & Origination for MENA & Turkey, said: “HSBC is delighted to have supported Averda as Green Coordinator, Structuring Bank, Global Agent and Security Agent for this facility, which will not only help the company strengthen its capital structure but also accelerate the development of its sustainable waste management services.” 

HSBC has aligned its green loan offering to the Loan Market Association’s Green Loan Principles, according to the statement. 

In February, Zawya had reported that Averda’s 'zero waste to landfill' facility for The Red Sea Project in Saudi Arabia had started operations. 

(Writing by SA Kader; Editing by Anoop Menon) 


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