Re:newcell finalizes loan agreement to finance new textile recycling plant
As part of the financing structure for its planned full-scale textile recycling plant in Sundsvall, Sweden, Re:newcell AB has announced that it has entered into a SEK 450 million (≈ EUR 44.2 million) loan facility agreement with Nordea, the Swedish Export Credit Corporation (SEK), and the Finnish export credit agency Finnvera.
According to a statement, the agreement was reached in November 2020, ahead of Re:newcell’s successful IPO on Nasdaq First North Premier Growth Market.
I am proud that the Renewcell team has been able to put together a project that meets the high standards of trusted financial institutions such as Nordea, SEK and Finnvera. They know the pulp industry through and through and will now play an invaluable role in ensuring the successful scale up of our innovation. I am confident that more lenders will now follow their lead in financing the Industrial Evolution to circularity and sustainability globally, commented Patrik Lundström, CEO of Re:newcell.
This loan facility, together with the equity raised in the recent IPO, will enable Re:newcell to execute its plans to build and commission a 60 000 tonne capacity textile recycling plant in Sundsvall, Sweden.
Our cooperation with Re:newcell is a good example of how Nordea supports companies that carry the solutions on today´s sustainability challenges. We are really happy and proud that we can support Renewcell with our combined expertise within project financing and capital market and are looking forward to continuing this journey together, said Peter Dalmalm, Head of Business Banking Nordea.
The plant will be built on SCA’s industrial site Ortviken, Sundsvall, in a building currently housing a publication paper machine undergoing decommissioning.
We are proud to be able to support a new, innovative application of Finnish pulp technology and hope to see similar sustainability and circularity-driven projects more in the future, commented Cecilia Saarnia, Senior Adviser of Finnvera.
Following construction throughout 2021, Re:newcell plans to begin ramping up production of its 100 percent recycled and branded Circulose dissolving pulp at the new plant in the first half of 2022.
We are very proud to finance Re:newcell’s new plant for recycling textiles and thus contribute to increased sustainable Swedish exports and making the fashion industry circular. Renewcell’s operations are in line with our ambition to enable the export industry’s investments into a circular society, said Anna Karin Ljung, Client Executive at Swedish Export Credit Corporation.
Vinge acted as Re:newcell’s legal advisor for the loan facility agreement.