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Green funding for circular material flows

Pappersåtervinningsstation

Stena Metall establishes a loan facility with Handelsbanken and DNB

June 2020 saw the start of the new green revolving credit facility that will be used for purchasing waste, with the aim of recycling material within the recycling companies’ operations.

The Stena Metall Group’s recycling companies collect, process and recycle all types of waste. Every year, the Group recycles six million tonnes of waste, helping to preserve valuable resources and providing the community with important recycled raw materials.

This recycling of materials yields environmental benefits through reduced greenhouse gas emissions and is also positive for economic development, as less energy is consumed, and existing resources are utilised better. According to the Ellen MacArthur Foundation’s report (Sept. 2019), up to half of our society’s climate emissions are a direct result of linear processing of our material flows. For some materials, the CO2 savings are now no less than 95 per cent, if recycled material is used instead of new. 

Back in 2018, Stena Metall issued a green bond in the green framework for bonds, in which Handelsbanken was an advisor. The framework received a ”Dark Green” rating from Cicero Shades of Green. 

Peter G

Comments from Stena Metall: “Since sustainability is a key part of our recycling operations, and we, together with industry, are focusing on developing the circular economy, we are delighted that we have another example of green funding in place. The aim of the new green revolving credit facility is to fund waste that is purchased to be recycled and become new raw materials. This means that large amounts of CO2 emissions can be avoided by circular material replacing the extraction and production of new raw materials,” says Peter Gustafsson, Head of Stena Metall Finans. 

Anna Lindvetter

Handelsbanken has co-ordinated the new facility, and Anna Lindvetter, who works with Sustainable Funding at Handelsbanken Debt Capital Markets, which developed the structure of the facility together with the company, comments: 

“Society needs to recycle waste and make the most of existing resources to a greater extent, thus reducing environmental and climate impact. Handelsbanken is pleased to be able to work with Stena Metall, which has an important role to play in increasing circular utilisation of resources. Stena Metall was also one of the first business-operating companies to issue a green bond, and is in the forefront of green funding. We are proud to have helped to develop the green funding market with this credit for circular material flows.”