Averda, an integrated waste management services provider in the Middle East and Africa, has completed an upsizing and tenor extension of its syndicated term loan facilities, to a total of $181 million, in a transaction which was 70% oversubscribed due to strong interest from both international and regional banks.
The company said that the extended facility will enable it to continue to optimise its capital structure and further drive its ambitious growth strategy.
Averda added that since its inception in the 1960s, has undergone a fundamental transformation in the last three years under its current management team. The team said that its has built a resilient waste management business based on four key pillars: providing a fully integrated offering; winning long-term contracts which provide revenue visibility; geographic diversification into some of the highest municipal solid waste growth markets globally; and building a strong customer base comprising mainly blue-chip corporates, quasi sovereign entities and a broad base of SMEs.
Averda said that it has driven growth organically, boosted by strategic bolt-on acquisitions over the past three years at an average CAGR of over 18% p.a. Operating income and margins have shown double digit growth year-on-year over the same period.
Today, the company operates in eight countries across the Middle East, North Africa and Sub-Saharan Africa, with around 10,000 clients in over 40 cities and municipalities, employing 15,000 people and with a fleet of 3000 trucks.
Samir Sharma, CFO of Averda, commented:
“We are delighted at the response we have received from this exceptionally high quality international banking syndicate. From humble beginnings, Averda has grown from a single-country operator to one of the region’s largest and most diversified environmental services providers, operating in eight countries across two continents, with a leading market position and high barriers to entry.
“Our growth strategy combines organic and inorganic expansion and an increased focus on technology driven services, including waste-to-energy. The extended facility gives us an enhanced platform from which to drive that strategy forward.”
The $181 million term loan is a senior secured amortising facility with a final maturity in December 2023.
Nine international and regional banks participated in the transaction. With strong interest from lenders in Averda’s growth prospects, the facility upsize was oversubscribed by 70%.
Citi acted as Sole Coordinator on the financing. The participating banks are: Bank ABC Islamic, Barclays, Citi, Credit Suisse, First Abu Dhabi Bank, HSBC, Intesa Sanpaolo, Natixis, and Standard Chartered Bank.
Naveed Kamal, Head of MENA Corporate Banking for Citi, said:
“Citi has been banking Averda for over eight years now and has supported the company as it has developed into the leading integrated waste management provider across the Middle East and Africa.
“We have been encouraged to see such strong appetite amongst lenders to support this dynamic company into the next phase of its growth.”
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