Eurocell plc, founded in 1974, is a leading manufacturer, recycler and distributor of innovative window, door and roofline PVC products. Headquartered in Derbyshire, the company operates a nationwide network of more than 219 branches, supplying a range of PVC-U roofline, conservatory roof, window trim and door products, as well as the fixings, sealants and tools required for building plastics projects.
Through its two market-leading recycling plants, Eurocell recycles both old windows and factory offcuts to produce recycled material which is then used to generate brand new extruded products.
Sustainability is at the heart of Eurocell’s business strategy, with the company committed to reducing and reusing PVC waste wherever possible, while continually developing innovative, sustainably-sourced products from recycled materials.
Looking to refinance its £75 million sustainability-linked Revolving Credit Facility (RCF), Eurocell approached NatWest to support in the role of Facility and Security Agent.
Working closely with Eurocell and the club banking group, we delivered the refinancing package within a short timeframe, that allowed Eurocell to announce the deal at its Annual General Meeting in May.
NatWest also took a joint-top tier hold in the facility, which matures in 2026 (with an option to extend for an additional year).
Sustainability-linked products are most prevalent in the sustainable debt markets, such as sustainability-linked bonds or loans. The cornerstone of a sustainability-linked product is that the product’s financial and/or structural characteristics can vary depending on whether or not the selected Key Performance Indicators (KPIs) reach the predefined Sustainability Performance Targets (SPTs).
By linking the achievement of sustainability targets to a financial incentive – such as a rebate, or a punitive measure – such as an added fee, the users of sustainability-linked financial products are explicitly committing to future improvements in sustainability outcomes within a predefined timeline. Eurocell’s RCF is linked to annual recycling, emissions, and waste reduction targets.
Paul Mitchell, Corporate & Commercial Coverage, NatWest, said: “This transaction is also an example of teams within NatWest coming together to deliver the best outcome for our customer, and to achieve this swiftly.”
Michael Scott, Eurocell, commented: “We are very excited to have secured the refinancing of our sustainability-linked credit facility, and we are very pleased to have found a like-minded banking partner in NatWest, who share our commitment to sustainability.”
Finance is subject to status. Security may be required. Product fees may apply.
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