Release date: 24 May 2022
Promoter – Financial Intermediary
PACKBENEFIT SLLocation
Description
The project comprises the construction and operation of a new production unit for the manufacturing of recyclable and compostable food packaging made from virgin renewable pulp, as well as research, development and innovation (RDI) activities related to renewable packaging, in Valladolid, Spain.
Additionality and Impact
This project eases the financial constraints on SMEs/midcaps due to information asymmetries regarding the environmental benefits of the products produced in the context of developing bioeconomy industries. By supporting SMEs/midcaps, the EIB is sending a positive signal to private investors and thus encouraging further financing in the wider bioeconomy.
The project aims to address the failure of financial markets for SMEs and/or mid-cap companies, which results from limited access and/or high cost of finance charged by creditors/investors due to information asymmetries, lack of collateral and imperfect screening and monitoring.
The project generates positive externalities in the form of environmental and public health benefits by reducing the negative externalities of using fossil fuel-based raw materials (i.e. plastics), replaced by new and improved renewable materials (i.e. pulp).
The EIB contribution makes a difference for the company as it is allowing it to implement its expansion project as envisaged, providing a fixed rate long term financing coupled with warrants which is not available in the market. The Project would not have been carried out in the same timeframe without the EIB support.
Objectives
The objective of the EIB financing is to support the construction of the Promoter's second commercial-scale food trays plant, as well as RDI activities.
Sector(s)
- Industry - Manufacturing
Proposed EIB finance (Approximate amount)
EUR 13 million
Total cost (Approximate amount)
EUR 27 million
Environmental aspects
The project activities do not fall under Annexes I or II of the EU Directive 2014/52/EU amending the EIA Directive 2011/92/EU. As such, the project activities and are not subject to a mandatory environmental impact assessment (EIA).
Procurement
The Promoter is a private company. It utilises the procurement procedures that are usual in the industry and are satisfactory to the EIB. EU procurement directives are not applicable.
Status
Signed - 22/12/2022
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).