• Sustainability
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Averda: Circular economics

  • Article

How is Averda using green finance to promote recycling in emerging markets?

Find out how we are helping Dubai-based Averda expand its recycling and recovery services in less-developed markets.

For Averda, sustainable waste management is not just good for the planet; it is a business opportunity. The Dubai-based company is expanding its recycling and waste-to-energy services to meet surging demand, particularly in emerging markets.

Averda’s services range from collecting household bins to processing hazardous waste and dangerous chemicals. It operates in eight countries across India, the Middle East and Africa, serving 60,000 clients including municipal authorities and major industrial and commercial companies.

Recent investments have further developed the company’s waste treatment capabilities, with the goal of providing circular recovery options in all markets. In one example, Averda is reclaiming 1 million tonnes of solid waste from Amritsar’s landfills to be used as fuel in a new waste-to-energy project.

“Becoming more sustainable is our responsibility, but it is also an opportunity,” said Samir Sharma, Averda’s Chief Financial Officer. “We are delighted that our commitment to bringing circular economy principles to developing economies has been validated and supported by HSBC.”

In August, Averda worked with HSBC to refinance an existing credit line from a group of banks and support its expanding business. The new US$148m five-year financing included a US$30m green loan from HSBC, which will be used specifically to support Averda’s sustainable waste management projects.

These include a blending facility in Vlakfontein, South Africa, which processes hazardous waste into fuel that can be used as an alternative to coal in industries such as cement production.

HSBC has engaged Sustainalytics to confirm that the green loan meets the bank’s standards, which are aligned with the Loan Market Association’s Green Loan Principles. HSBC has committed to mobilize at least US$750 billion by 2030 to support businesses in the transition to a more climate-friendly, low-carbon future.

“This facility will not only help the company strengthen Averda’s capital structure but also accelerate the development of its sustainable waste management services,” said Daniel Howlett, Regional Head of Commercial Banking for Middle East, North Africa and Türkiye at HSBC. “There is a huge demand for these services in developing economies that are wrestling with the urgent need to transition to a more circular economy and balance economic growth with combatting climate change.”

Averda has set a target of realigning its portfolio over the next three years towards recycling, composting and energy recovery, prioritising sustainable practices over pure cleaning and collecting contracts to unlock more value from waste. It is planning further expansion into Asia and growth in sustainable waste management technologies, both organically and through acquisitions.

“We are hopeful that this deal will pave the way for more access to green financing as we further expand our sustainable waste management services by investing in existing and new facilities,” said Sharma.


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