Macquarie makes £120 million debt investment in UK energy from waste sector

Macquarie Infrastructure Debt Investment Solutions (“MIDIS”) has announced a £120 million long-term debt investment in a portfolio of energy from waste assets operated by Viridor.

Viridor operates 11 energy recovery facilities across the UK. The portfolio processes 3.1 million tonnes of non-recyclable waste each year and represents 337 MW of installed capacity. Viridor also has a pipeline of projects under development, including a plastics recycling facility due to enter operations later this year.

The long-term senior secured debt financing provided by MIDIS replaces shorter-term debt raised by Kohlberg Kravis Roberts & Co. L.P. managed funds for their £4.2 billion acquisition of Viridor from Pennon Group PLC in July 2020. MIDIS was one of the largest institutional lenders in the financing package, investing on behalf of pension fund and insurance clients from the UK, Europe, and Asia.

Eric Henschel, Senior Vice President, MIDIS, said: “Viridor is a welcome addition to the MIDIS portfolio and in line with our strategy of supporting the development of sustainable infrastructure businesses. With its advanced energy recovery facilities and commitment to the circular economy, Viridor is helping to power communities across the UK whilst reducing the amount of waste sent to landfill each year.”

MIDIS is helping to finance the UK’s transition to a low-carbon economy. Since its inception in 2012, MIDIS has provided more than £1.5 billion in debt financing to leading borrowers across the energy from waste, onshore wind, offshore wind, and solar PV sectors.