Green Investment Group (GIG) has closed on its investment in Covanta’s Dublin waste to energy project.
As an initial step of the joint venture, announced on December 18, 2017, GIG agreed to invest €136 million for a 50% equity stake in the project. Covanta retains ownership of the remaining 50% of the project and will continue to operate and maintain the Dublin facility.
Covanta initially expects to use the proceeds from the transaction to reduce debt outstanding. As projects in the joint venture's combined UK development pipeline move to construction, the funds will be available to meet Covanta's portion of project equity obligations.
Covanta president and CEO Stephen Jones said: "Closing this transaction enables Covanta to meet a number of strategic goals, including providing funding for our development efforts and improving our balance sheet. This transaction further highlights our ability to recycle capital at attractive returns, which we believe is a strategy that we can leverage in the future.
“We are excited to have GIG as a partner in this world class facility and look forward to providing a sustainable waste solution and renewable electricity to Dublin for decades to come."