Cory Riverside Energy has announced the completion of a £520 million debt refinancing package for its Riverside Energy from Waste (EfW) plant in Belvedere, East London.
According to Cory, the refinancing package ‘demonstrates the great confidence’ in the facility as a key piece of waste infrastructure within London.
The Belvedere incinerator in south east London. Cory will focus on EfW as its core business
As part of the deal existing senior term debt was refinanced with a £420.5m multi-tranche senior facility and a £98m junior facility. Lenders include both infrastructure-focused banks and well-known institutional lenders, according to Cory.
The Belvedere facility is among the largest energy from waste plants in operation in the UK, with a capacity to treat up to 750,000 tonnes of residual waste per year.
Riverside
Waste for the plant, which was opened in 2012, primarily comes from the Western Riverside Waste Authority – comprising Hammersmith & Fulham, Kensington & Chelsea, Wandsworth and Lambeth councils, as well as other waste from the London borough of Bexley and City of London.
“This refinancing is an exciting opportunity for us to focus on future growth and to develop the business even further.”
Nicholas Pollard
Cory Riverside Energy
Much of the waste delivered to the facility, is transported by barge along the River Thames.
Cory’s operations have undergone major restructuring in recent months, with the company having re-focused its strategy solely on the energy from waste element of the business.
This restructure involved the sale of its municipal collections division to Biffa in June 2016 (see letsrecycle.com story), as well as the sale of its landfill sites across 14 locations to Armour Group Holdings in January 2017 (see letsrecycle.com story).
‘Confidence’
Nicholas Pollard, chief executive of Cory Riverside Energy, said: “This refinancing and the make-up of our new lenders demonstrates great confidence in Cory Riverside Energy and our place at the heart of London’s resource management infrastructure. It marks the culmination of the plan agreed with our shareholders 15 months ago, and completes the restructuring of the business. Our financial structure now reflects the operational structure, with a simplified business and removal of historic risk.
Waste is transported via the River Thames to Cory’s Belvedere facility, with IBA sent onwards to Tilbury
“Our Riverside facility and infrastructure is unique in the sector, with an exemplary operational track record. It has been reliably operating at capacity since day one, and has the benefit of long-term contracts and indexed gate fees. We’ve had another record year, with 12 months of operating at a new, higher capacity. This refinancing is an exciting opportunity for us to focus on future growth and to develop the business even further.”
Cory Group is majority-owned by investment funds managed by Strategic Value Partners, with other investors including EQT Services (UK) Limited and Commerzbank. Cory Riverside Energy was advised by Rothschild on the refinancing.
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Source: letsrecycle.com Waste Managment
