HSBC arranges P1.35 billion loan for Razon infrastructure arm

MANILA, Philippines — The Philippine arm of British banking giant HSBC has helped arrange a green loan amounting to P1.35 billion to help a unit of port and gaming mogul Enrique Razon’s infrastructure arm acquire a waste management company based in Cebu.

HSBC Philippines said the loan was made available to Prime Integrated Waste Solutions Inc. (PWS), a subsidiary of Razon-led Prime Infrastructure Capital Inc. for the acquisition of ARN Central Waste Management that specializes in waste management and materials recovery.

Mimi Concha, head of wholesale banking at HSBC Philippines, said the bank is ready to support clients in their transition journeys in the Philippines and around the world.

“This is one of the notable ‘green’ loans that the bank has extended in the country, and by supporting PWS in its waste management efforts, this is clearly in line with HSBC’s overall climate strategy given the expansion of the facility will bolster sustainable waste management capacity, limiting the amount of waste that ends up in landfill and creating new jobs in an emerging sector,” Concha said.

The facility aims to help PWS to scale up the facility to process around 2,000 tons of municipal solid waste daily.

The business model of PWS covers the full value chain once the waste is delivered to their facility from treatment, disposal, resource recovery, to conversion.

It changes the municipal solid waste and industrial solid waste management landscape for the better as PWS relentlessly pursues positive social and environmental initiatives that align with the purpose of making better lives and resilient economies through critical infrastructure.

The 17-hectare site currently receives and processes around 1,000 tons of municipal solid waste daily. PWS plans to double that capacity to 2,000 tons while bringing the quality of operations at par with world-class materials recovery facilities.

PWS’ transformation strategy focuses on resource recovery using state-of-the-art equipment, significantly reducing the amount of trash that is ultimately landfilled, as well as operationalizing the recyclables business by producing refuse-derived fuel.

PWS fully employs material recovery attendants from surrounding indigent communities and upholds high standards of safety to ensure the well being of its entire workforce.

Prime Infra’s investment in waste management is part of a broader strategy to optimize the value created from waste through its complementary sustainable fuels business.

“Aligned with our vision to develop critical infrastructure that impact communities across our core segments of water, sustainable energy, and waste management, Prime Infra established PWS to answer the increasing demand for waste management solutions especially in industrialized and fast-growing cities,” Prime Infra president and CEO Guillaume Lucci said.