Macquarie announces £120m investment in energy portfolio from waste assets

Written by Michael Griffiths

01/10/2020

Macquarie Infrastructure Debt Investment Solutions has announced a £120m long-term debt investment in a portfolio of energy from waste assets operated by Viridor.

Viridor operates 11 energy recovery facilities across the UK, with the portfolio processing 3.1 million tonnes of non-recyclable waste each year, and representing 337 MW of installed capacity.

The waste management firm also has a pipeline of projects under development, including a plastics recycling facility, which is due to enter operations later this year.

The long-term senior secured debt financing provided by Macquarie replaces shorter-term debt raised by Kohlberg Kravis Roberts & Co. L.P. managed funds for their £4.2bn acquisition of Viridor from Pennon Group PLC in July 2020. Macquarie was one of the largest institutional lenders in the financing package, investing on behalf of pension fund and insurance clients from the UK, Europe, and Asia.

Macquarie also suggested it is helping to finance the UK’s transition to a low-carbon economy. Since its inception in 2012, the group has provided more than £1.5bn in debt financing to leading borrowers across the energy from waste, onshore wind, offshore wind, and solar PV sectors.

“Viridor is a welcome addition to the Macquarie portfolio and in line with our strategy of supporting the development of sustainable infrastructure businesses,” MIDIS senior vice president, Eric Henschel, commented.

“With its advanced energy recovery facilities and commitment to the circular economy, Viridor is helping to power communities across the UK whilst reducing the amount of waste sent to landfill each year.”

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