Moscow, December 28, 2020 — Gazprombank and VEB.RF ensured the execution of a deal on the attraction of investors for Upravlenie Otkhodami JSC. Additionally, a loan facility of RUB 10 bn was established for the company. The money will be spent to fund new investment projects and improve the structure of the borrower’s loan portfolio.
Upravlenie Otkhodami JSC is the largest Russian group of concession companies in field of solid municipal waste (SMW) treatment. Currently, the group is implementing eight concession agreements in six constituent entities of the Russian Federation: Nizhny Novgorod, Saratov, the Murmansk and Chelyabinsk Regions, the Chuvash Republic and the Khanty-Mansi Autonomous Area. In four regions, group companies serve as regional operators. The population of the territories where Upravlenie Otkhodami JSC operates is over 7 mln people. Its annual SMW turnover is more than 3 mln tons.
“This M&A deal involving the purchase of a major SMW concession player shows that the market for PPP projects is maturing in Russia. We are happy to take part in the development of new industry trends and implement unconventional deals. Moreover, this project is socially significant; it complies with the principles of sustainable development (ESG) that Gazprombank shares,” noted Pavel Brusser, Executive Vice President — Head of Gazprombank’s Infrastructure Projects and Public-Private Partnership Department.
“The implementation of projects in the urban economy and urban ecology sector is a top investment priority for VEB.RF. We expect to get the opportunity to leverage the extensive experience of Upravlenie Otkhodami JSC in organizing an efficient system for SMW treatment in other regions as well. This will enable the industry’s development, improvement of the population’s quality of life and achievement of the national goal of 100% SMW sorting and a twofold reduction in waste burial by 2030. Our support is helping the emergence on the SMW-treatment market of a major player — one that has already implemented eight concessions in six regions. The credit facility will be forwarded towards the establishment of new facilities in accordance with the concession agreements that we have concluded,” said Nikolai Tsekhomsky, First Deputy Chairman of VEB.RF — Member of the Management Board.
“Despite the obvious challenges facing the sector’s emergence in Russia, we think that waste treatment is becoming one of the most promising industries in the new economy and poised to be a driver of its growth over the next ten years. We plan to vigorously develop the company’s activities in accordance with responsible investment principles and to enable implementation of the goals set by the Ecology national project. The synergy of the experience accumulated in recent years and the innovative approaches of a new team, coupled with the quality advisory support and additional investment resources provided by a banking syndicate, ensures that our ambitious plans will be implemented,” commented Alexey Koldunov, CEO of Upravlenie Otkhodami JSC, in speaking about the deal.