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Dec 06, 2017 16:08 EEST
The European Bank for Reconstruction and Development (EBRD) and Romanian lender BCR are providing a $38.7 million (32.6 million euro) club loan to Romanian company Green Oil and Lubes for the development, construction and operation of a recycling plant for waste lubricant oils.
The financing is part of a $56 million investment programme by the company, with the goal of building a 73,000-metric-tonne recycling facility in the southern Romanian city of Oltenita, the EBRD said in a press release.
By supporting a new recycling facility, the investment addresses a core issue in Romania’s transition to a sustainable and green economy, the EBRD added.
The plant will recycle waste lubricant oils and transform them into base oils for sale and reuse in the automotive and industrial sectors.
"It is a highly innovative greenfield investment in Romania and one that focuses on the circular economy and the environment," EBRD Regional Director for Romania and Bulgaria, Matteo Patrone, said.
Green Oil and Lubes SRL is part of a group of companies established by the Indian engineer and businessman Mazarali Kamumiya Saiyed.
The group will contribute $26 million of its own funds to the investment programme, while the remaining $30 million will be ensured by a term loan in equal measure signed by the EBRD and Banca Comerciala Romana (BCR). Under the same facility agreement, BCR will also provide $8.7 million for the financing of working-capital needs and recoverable VAT related to the development of the project.
"Co-financing environmental projects is one of the strategic directions of BCR and we are glad that we can contribute to an investment that addresses one of Romania's critical issues, namely, domestic and industrial recycling facilities," BCR CEO Sergiu Manea said.
The new company expects to collect the majority of recyclable waste oil in the country and to create a product that is attractive and affordable for local customers. In addition, the construction of a brand-new facility will include a significant transfer of skills and technology, while providing approximately 70 new jobs.
The EBRD is a leading supporter of green energy. Under its Green Economy Transition approach the bank aims to raise its investment in this area to more than 4% of annual business investment by 2020.
The EBRD has invested 7.5 billion euro in some 400 projects in Romania to date.
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