Averda successfully completes $148m refi including HSBC ‘Green Loan’

Averda, the leading waste and recycling company operating across the emerging world, is pleased to have concluded a successful refinancing of its $148m term loan, including a $30m Green Loan from syndicate leader HSBC.

The refi, 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% 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)

“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 $30m Green Loan portion reflects Averda’s recognised role in bringing sustainable waste management and waste-to-energy technology to the developing world. This is a key area of growth for Averda. There is a huge demand for these services in developing economies which are wrestling with the urgent need to transition to a more circular economy and balance economic growth with combatting climate change.

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. We are very proud of our relationship with Averda and are looking forward to helping the company on its journey towards a more sustainable future.”

HSBC has aligned its Green Loan offering to the Loan Market Association’s Green Loan Principles, which aim to create market standards and guidelines, providing a consistent methodology for use across the green loan market. It will be used to support a number of 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.

Samir Sharma added: “We are delighted that our commitment to bringing circular economy principles to developing economies has been validated and supported by HSBC. We are hopeful that it will pave the way for more access to green financing as we further expand our sustainable waste management services by investing in existing and new facilities.”