The company said the refinancing of the GBP28.5m Avonmouth facility sees GBP20m of senior debt introduced into the project at a gearing level of 70%.
Norddeutsche Landesbank Girozentrale (NORD/LB) and The Co-operative Bank provided senior debt on a 50-50 basis.
The re-financing will enable New Earth Recycling & Renewables (Infrastructure) (NERR) to reinvest the proceeds of the refinancing into New Earth’s upcoming waste treatment and renewable energy projects.
The waste treatment facility was originally funded through equity and junior debt provided by infrastructure investment funding sourced from NERR together with New Earth’s own equity investment.
The Avonmouth waste treatment facility opened on schedule on 1 April 2011 and employs mechanical and biological processes to treat household and commercial residual waste.
Following completion of the Avonmouth refinancing, NORD/LB and The Co-operative Bank have now jointly provided GBP50m of senior debt to New Earth’s five operational waste treatment facilities across the UK.
