Waga Energy (Waga) and Meridiam, an investment fund specialising in public infrastructure finance, have obtained a €10.4 million loan to refinance four WAGABOX biomethane units in France.
The loan from BNP Paribas and Banque Populaire Grand Quest underpins Waga’s ability to rely on financial institutions to deploy its innovative WAGABOX gas-to-biomethane technology.
The units are part of two SPV companies, one of which is jointly owned by Meridiam. The two companies signed a non-recourse credit agreement with the banks to repay the loans previously contracted with Waga and Meridiam. The refinancing of the four units will strengthen Waga’s cash flow and enable further financing of new projects in Europe and North America.
The SPV company jointly owned by Waga and Meridiam hosts three biomethane units, one of which is still under construction. The second SPV company hosts one unit and is 100% owned by Waga. When the final unit is commissioned, the projects will generate a total of 95 GWh of biomethane annually and prevent emissions equivalent to 17,000 tonnes of CO2.
“The success of this refinancing operation demonstrates the finance community’s confidence in our business model and our technology,” said Marie-Amelie Richel, administrative and financial director of Waga Energy.
“Our ability to raise bank debt to reduce the cost of project financing is a major factor in the competitiveness of the biomethane we produce.”
Julien Touati, partner at Meridiam, commented: “This partnership with Waga Energy, which is entering a new phase with the mobilisation of leading long-term banking partners, is a perfect illustration of our desire to bring technological solutions to the service of the energy transition.
“Fostering circular economy models is at the heart of our mission. We have supported Waga Energy for three years now and we embrace this pioneering role in the production of biomethane and green gas, a sector in which we are now one of the main investors in France.”