Bank acquires equity stake for €10 million
The European Bank for Reconstruction and Development (EBRD) is acquiring a minority stake in Eco Baltia JSC, a leading provider of waste treatment in Latvia and the Baltic states. The Bank’s investment of €10 million will be used to finance construction of a mechanical biological treatment plant for household waste.
The plant will be the first of its kind in the region, focusing on extraction of recyclable materials from household waste. In Latvia, nearly 90 per cent of municipal waste is being landfilled and the new plant will play an important role in strengthening an approach to waste management in line with recent European legislation.
Eco Baltia was set up in 2002 and operates in waste recovery, waste collection, polymer recycling and the sorting and trading of recyclables. It is the largest waste management operator in the Baltic region with strong growth potential due to a stable macroeconomic environment and growing awareness of environmental concerns.
Matt Hyyrynen, EBRD Head of Office for the Baltics, said: “We are very proud to sign this investment because we believe in Eco Baltia and the company’s activities and strategic direction. By becoming a shareholder, the EBRD aims to make a strong company even stronger for the benefit of the environment and the economy. Companies are increasingly realising the vast potential of recycling and for this they need waste management operators like Eco Baltia.”
Māris Simanovičs, Chairman of the Board of Eco Baltia, added: “I believe that the EBRD is a valuable partner for Latvian companies operating or planning to operate on an international level. The EBRD’s contribution of financial resources, experience and high corporate governance standards is an essential addition to bring our potential to fruition. The EBRD’s decision to invest in our company after thorough examination is an endorsement of Eco Baltia and boost for our future development.”
The EBRD has been investing in Latvia since the country’s independence in 1991. To date, the Bank has invested more than €620 million in some 75 projects throughout all sectors of the economy. In recent years, the EBRD has focused on the support of small and medium-sized enterprises and investment in promising innovative enterprises through direct acquisition of equity or via funds.