Green Group is launching the first sustainable syndicated loan in Romania

Green Group 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.

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.

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 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.

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