International law firm Ashurst is advising Renewi plc, the international waste-to-product company, on an amendment and extension to its main banking facility, converting it to a €550 million Green Loan. Renewi is one of the first FTSE250 companies to refinance its entire bank borrowings using green certification.
Renewi is wholly focused on sustainability, with the vast majority of its assets classified as 'green', as they support pollution prevention and control as defined in the ICMA Green Bond Principles and LMA Green Loan Principles. The facility is also one of the first to introduce sustainability improvement into the terms of the borrowing facility. Accordingly, Renewi will benefit from a lower margin payable on its borrowings in the event that it achieves each of five sustainability objectives.
The €550 million facility has been extended to May 2023 with options to extend into 2025. It is structured so as to allow future green bonds and green debt placements to be issued under the same Green Framework.
The innovative green facility has been financed by Renewi’s six relationship banks: ABN, BNPPF, HSBC, ING, KBC and Rabobank.
The Ashurst team was led by global loans partners Nigel Ward and Martyn Rogers and senior associate Campbell Johnston.
Martyn Rogers commented:
"It was exciting to work with Renewi in developing the innovative Green Loan conversion of its existing main facility. As one of the first FTSE250 companies to refinance its main general corporate facility using recently published LMA Green Loan Principles, we anticipate that this will prompt a greater number of corporates to consider sustainability-linked funding."
