An ultra-modern sorting centre designed to recycle more plastic
With the entry into force of the new EU Packaging Waste Directive, which calls for the recycling of more plastic waste, a new PMD rubbish bag is due to appear everywhere in Belgium by 2021. In the blue bags currently in use, you are only allowed to place plastic bottles, metal packaging and drinks cartons. In the new P+MD bags, however, you will be authorised to throw butter tubs, yoghurt pots, plastic wrapping, etc, etc.
New recycling techniques
“In order to be able to sort wastes from the new type of blue rubbish bag, you need innovative sorting centres and recycling techniques,” explains Karolien De Neve, BNP Paribas Fortis Relationship Manager for Indaver and its parent company Katoen Natie, adding: “Indaver is now building one of these new plants with our support. The company aims to sort 56,000 tons of plastic waste there annually, or 5kg of waste per person.”
‘Green’ loan for an environmentally-friendly project
In order to build the new sorting centre, Indaver obtained a ‘green’ loan from the bank. To do so, the project has to meet a number of specific criteria.
“We grant a ‘green’ loan only if the money is to be used for an environmentally-friendly project,” Karolien points out, underlining: “Clearly, the P+MD processing facility was an obvious candidate for this type of financing. Not only will they be able to sort a larger quantity of more complex wastes for recycling purposes, but also the plant will run practically 100% on renewable energy. Indaver works in an energy-efficient manner, keeping CO2 emissions as low as possible and following the highest environmental and quality standards.”
“During the lifetime of the loan, the company will provide us with an annual report on the environmental benefits achieved by the P+MD plant and will in return obtain the proposed interest rate reduction,” adds Karolien.
First ‘green’ interest rate hedging in Belgium
The loan that Indaver has taken out carries a variable interest rate. The interest payable is currently at a low level and is likely to remain so over the next two years. Nevertheless, there is a risk that the interest rate will rise in the future and that the company will then have to pay more. In order to hedge that risk to some extent, Indaver has opted to switch over after two years to a fixed-rate arrangement for a period of five years. This involves what is known as an interest rate ‘swap’. Moreover, instead of arranging a traditional rate hedge, Indaver opted for a ‘green’ rate hedge, thus stepping up its environmental commitment.
Sustainability premium
“We’ve linked the interest rate swap to a number of measurable ‘green’ conditions that Indaver has to meet,” explains Filip Moens, Head of Corporate Solutions at BNP Paribas Fortis, stressing: “If the company doesn’t meet them, it will have to pay a Sustainability premium. That premium wouldn’t simply go into the bank’s pocket; we have undertaken to invest the money in an environmental project. In consultation with Indaver, we’ve chosen a project run by Reforest’Action, an organisation that works to promote reforestation worldwide. Our chosen project is specifically geared to planting trees in Belgium.”