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MIL OSI Translation. Region: Russian Federation –

REO Supervisory Board approved the issue of green bonds.

The Supervisory Board of REO approved the program for the issue of bonds of PPK Russian Environmental Operator for 100 billion rubles. Within the framework of the bond program “REO” will finance projects for the construction of facilities for handling solid municipal waste, said Deputy Prime Minister Victoria Abramchenko.

In total, it is planned to create more than 800 objects by 2024, some of these objects will be financed within the framework of this program.

“This year, the Government approved such a measure to support the industry as a bond loan for the Russian Environmental Operator. The next stage is the entry of a public company to the stock exchange. Green bonds are a necessary financial instrument to support projects in the field of MSW management. Attracting a wide range of investors is necessary for the independent development of the industry and the closed-cycle economy, ”noted Victoria Abramchenko.

“To achieve the goals of the Ecology national project, we must attract about 350 billion rubles of investments into the industry. To attract private money, “REO” is preparing to issue bonds for a total of 100 billion rubles. Financing of investment projects with funds raised through the issuance of bonds issued by PPK “REO” will allow to ensure by the end of 2024 the creation of facilities for MSW processing with a capacity of up to 6.9 million tons per year and disposal facilities with a capacity of up to 2.3 million tons per year.

After the Central Bank registers the program, we will start making separate issues for specific projects under this program. This will be an issue for a wide range of investors, both legal entities and, we hope, individuals, anyone will be able to go and buy bonds of PPK REO and contribute to the development of the MSW management industry in their region, ”said the CEO PPK “Russian ecological operator” Denis Butsaev.

Each loan will be secured by commitments for specific projects for the creation of waste management facilities in the regions. Presumably, these will be concession agreements, investment agreements or commercial initiatives for the creation of facilities for the management of MSW, for which guarantees will be provided by the regions or large companies. The circulation period of each issue will be up to 12 years.

EDITOR’S NOTE: This article is a translation. Apologies should the grammar and or sentence structure not be perfect.

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