PPK REO and Rosselkhozbank agreed to finance investment projects in the field of MSW management

Dear colleagues!

The Association StekloSouz of Russia is working hard to implement the Concept of Extended Responsibility for Producers and Importers of Goods and Packaging (ERP) with the Russian Environmental Operator (PPK REO) on issues of vital interest to the glass industry.

At present, the Russian Environmental Operator and Rosselkhozbank have agreed to cooperate in the field of raising funds for investment projects in the field of municipal solid waste management.

The agreement, which was signed on April 27, 2022, implies the unification of the efforts of the parties in the consideration and financing of projects in the field of waste management. The parties also agreed on the redemption of bonds of the Russian environmental operator by Rosselkhozbank in the amount of at least 50 billion rubles, of which 5 billion were previously allocated by the Government of the Russian Federation.

The Supervisory Board of the PPK REO approved the issue of bonds in the amount of 100 billion rubles in 2022-2024 to finance the construction of facilities in the field of waste management, 50 billion rubles of which will be attracted from other investors, both legal entities and individuals. We are talking about projects aimed at achieving the result of the federal project "Integrated system for handling municipal solid waste" of the national project "Ecology".

“Today, we signed a 5-year cooperation agreement with Rosselkhozbank to finance investment projects as part of the creation of MSW treatment facilities. This agreement provides for the basic principles of interaction between the two development institutions for the joint financing of projects in the field of MSW management. PPK REO will issue bonds for specific projects, and Rosselkhozbank will be one of the main partners and buyers of these bonds. The coupon yield on PPK REO bonds will be subsidized from the federal budget in the amount of 90% of the key rate of the Bank of Russia. This will enable PIC REO to finance projects on preferential terms at a rate of about 7% per annum for up to 12 years, which, on the one hand, will ensure high investment efficiency for business, and on the other hand, will minimize the tariff consequences for utility consumers. Part of the bonds issued by PPC REO will be verified as "green". To this end, PPC REO has already passed the procedure for assigning a credit rating and an ESG rating, and has also developed a green policy for the company. Rating agency Expert RA assigned PPK REO an issuer credit rating of ruA and an ESG rating of ESG-II © with a stable outlook. Therefore, today we can confidently say that we have completed the difficult preparatory stage and, together with the Russian Agricultural Bank, we are embarking on the practical implementation of a long-term program to support the waste management industry in order to fulfill the tasks set by the President of the country under the national project "Ecology". We plan to finance the first projects this year. These are the Leningrad Region, Magadan Region, Perm Territory, Moscow, Samara Region, Oryol Region and a number of other regions of the country,” Denis Butsaev, General Director of the PPC REO, said.

“Protection of the environment and protection of the health of citizens is one of the most urgent tasks of our country. In particular, the national project "Ecology" is aimed at its solution. Its most important part is a large-scale reform to create a modern waste recycling industry. And we are glad that the state has instructed Rosselkhozbank to develop this area, which is extremely important for the well-being of the whole country. Cooperation between Rosselkhozbank and REO will expand the access of market participants to financing and will allow them to implement large investment projects in the field of MSW management. Rosselkhozbank will also provide projects with financial, economic and legal expertise,” said Boris Listov, Chairman of the Board of Rosselkhozbank.

Source: https://reo.ru/