GREEN GROUP, the largest integrated recycling park in Romania, has signed the first sustainable syndicated loan in the Romanian market, with a group of four local banks consisting of ING Bank, Unicredit Bank, Intesa Sanpaolo Bank and OTP Bank Romania, marking the beginning of larger scale involvement of the Romanian banking system in the local circular economy.
ING Bank Romania acted as coordinator and documentation agent. Arrangers were ING Romania and Unicredit. ING Bank London acted as facility and security agent. Transaction amount was 66,000,000 EURO, aimed to refinance existing loans and support new investment and development projects.
Bucharest, 5 of September 2019
With a unique business model which integrates the operations of 6 companies, Green Group is an important player in the European market for treatment and recycling of various types of waste such as: PET, glass, electrical and electronic equipment and used lighting equipment.
The new funding line supports EU efforts to stimulate a sustainable economic model, thus facing the shift to circular economy and tackling climate change by reducing greenhouse gas emissions. For example, the production of synthetic fibers from 100% recycled PET reduces the C02 footprint by 75% compared to gasoline production.
With a total investment of € 170 million and an installed recycling and production capacity of more than 460,000 tonnes per year, Green Group has an important contribution to the recovery of valuable waste materials. At the same time, Green Group contributes significantly to the recycling targets in Romania for both plastic waste (PET), glass and waste electrical and electronic equipment (WEEE).
Since the takeover by Abris Capital Partners in 2016, Green Group has grown significantly through the following major investments:
Plastic Waste Recycling and Polyester Synthetic Fiber Production
- 21 million EUR investment in a new plant for the production of polyester synthetic fiber in Urziceni, Ialomita County, with state-of-the-art technology and modernization of the existing factories in Buzau and Iasi, increased the installed production capacity by 55% to 80,000 tonnes /year;
- 13 million EUR investment for the automation of the sorting and recycling lines in Buzau increased the PET waste processing capacity by 50% to 100,000 tonnes per year;
- 8 million EUR investment in a new PET waste processing plant in Lithuania with an annual recycling capacity of 20,000 tonnes / year;
- 13 million EUR investment in a new PET waste processing plant in Slovakia with a recycling capacity of 45,000 tons / year.
Waste Electrical and Electronic Equipment recycling (WEEE)
- 11 mil EUR investment to strengthen leadership in the WEEE recycling market by opening the second plant at Campia Turzii, Cluj County, and to upgrade the recycling lines of the Buzau plant, thus doubling its treating capacity to 100,000 tons / year.
Green Group will continue to invest in the development of its recycling and production capacities, targeting the European Leadership position.
“Green Group is the pioneer of the circular economy in Romania, managing to move from recycling to upcycling, which means we can get high-quality polyester synthetic fiber from a PET bottle with the latest technology. Green Group uses a regenerative economy model, recycling 3 billion bottles of plastic per year, which means about 600,000 km of PET bottles,
that is, one and a half times the distance from Earth to Moon “said Constantin Damov, CEO Green Group.
Mihaela Bîtu, CEO ING Bank, said: “Sustainability is a subject more and more important in the banking environment and we expect sustainable business to become something common in the future decades. The signing of the first sustainable syndicated loan in the Romanian market by Green Group is a strong step for our local circular economy and we are glad that we could be an enabler and a supporter in this project”
“We want to contribute both to the protection and the sustainable development of environment and to supporting businesses that consider circular economy and promoting a viable economic model, thus proving we are doing “Banking that matters". Our participation in this syndicated loan, which will result in investments in new recycling capacities, shows the commitment undertaken by UniCredit Bank in supporting and diversifying the Romanian economy in a sustainable way”, said Răsvan Radu, CEO UniCredit Bank.
“The recycling industry is a growing business, and through this partnership we want to contribute to the development of the circular economy in Romania. OTP Bank Romania is actively supporting a sustainable future and we are proud to be partners in the first syndicated loan for recycling industry on the local market”, said Dragoş Mirică, Deputy General Manager, Corporate Division and Board Member at OTP Bank Romania.
About Green Group:
Green Group companies:
- GreenTech SA – recycled plastic waste and produces PET band and r-PET from 100% recycled material;
- GreenFiber International SA - produces polyester synthetic fiber;
- GreenWEEE International SA - treats and recycles electrical and electronic waste;
- GreenLamp Reciclare SA – treats and recycles used lightning equipment;
- GreenGlass Recycling – the largest glass recycling facility in the region;
- Total Waste Management, integrated provider of waste management services.
Since 2016, Green Group is owned by Abris Capital Partners, a private equity fund dedicated to investment in Central and Eastern Europe with capital investments of over € 1.2 billion.
For more information, please visit www.green-group.ro.
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About ING Bank
ING Bank Romania is part of ING Group, an international global financial institution which offers banking services to more than 34 million individual clients, companies or institutions, in more than 40 countries. Founded in 1994, ING Bank Romania is currently a universal bank, offering products and services to all client categories – large and small companies, financial institutions, small entrepreneurs and individuals.
ING’s mission is to support people to be one step ahead, both in life and in business. In Romania, this mission translates into the corporate social responsibility actions focused on the contribution to the financial education and entrepreneurship pillars, and also the involvement in social projects assisting local communities and people in difficult situations. In 2019, ING Bank România celebrates 25 years since its launch on the Romanian market.
About UniCredit Bank
UniCredit Bank SA is part of UniCredit, a simple successful pan-European Commercial Bank, with a fully plugged in CIB, delivering a unique Western, Central and Eastern European network to its extensive client franchise: 26 million customers. UniCredit Group is present in Romania through: UniCredit Bank, UniCredit Consumer Financing, UniCredit Leasing Corporation, UniCredit Insurance Broker, UniCredit Leasing Fleet Management şi UniCredit Services.
About OTP Bank Romania
OTP Bank Romania, subsidiary of OTP Group, is an integrated and self-funded provider of financial services. With an approach based on responsibility, commitment and professionalism, OTP Bank Romania understands its clients' needs and the current market context, being a reliable partner. The bank ranks 9th by assets in the top of Romanian banking players, as of December 2018.
OTP Group celebrates in 2019 70 years of existence, while the Romanian subsidiary marks 15 years of presence on the local market. By today, OTP Group has grown into a dominant player in the Central-Eastern Europe market and is regarded as a major banking group inclusive on European scale. The community of around 36 thousand OTP staff serves over 18.5 million customers in 9 countries on a daily basis.
About Intesa Sanpaolo Group
Intesa Sanpaolo Bank Romania is part of Intesa Sanpaolo, one of top banking groups in Europe and leader in Italy in all business areas (retail, corporate, and wealth management). The Group offers its services to 11.9 million customers through a network of over 4,200 branches well distributed throughout the country with market shares no lower than 12% in most Italian regions.
Intesa Sanpaolo has a strategic international presence, with approximately 1,100 branches and 7.5 million customers, including subsidiaries operating in commercial banking in 12 countries in Central Eastern Europe and Middle Eastern and North African areas, and an international network of specialists in support of corporate customers across 25 countries, in particular in those areas where Italian companies are most active, such as the United States, Brazil, Russia, India and China.