26 Jun 2024
ICON Corporate Finance (“ICON”) and I&M Burbidge Capital (“IMBC”) have advised leading plastics recycling innovator Mr. Green Africa on its debt raise from the U.S. International Development Finance Corporation (“DFC”).
The DFC is America’s development bank, which partners with the private sector to finance solutions to the most critical challenges facing the developing world.
Mr. Green Africa, the first recycling company to be a Certified B Corporation on the African continent, leverages business as a force for good to realise sustainable, long-term social, environmental, and economic impact through the collection, conversion and selling of post-consumer plastic waste.
Its innovative plastics collection model enables waste segregation and collection at the source, integrating informal waste workers, micro-entrepreneurs, and consumers into their formal value chain, increasing the amount of post-consumer plastic waste Mr. Green Africa collects and provides stakeholders the chance to earn a fair, predictable and transparent income and benefits.
Mr. Green Africa's technology-driven processing factory in Nairobi converts locally collected plastic waste into high-quality PCR (Post Consumer Recyclates), which it sells as a substitute for imported virgin plastics at competitive rates. To close the loop, Mr. Green Africa enables FMCGs and others realise their sustainable packaging goals by accessing ethically sourced, locally produced PCR.
The DFC’s investment will fund a new flagship factory, which unlocks a five times increase in processing capacity.
The DFC joins incumbent equity investor Dow Europe Holding B.V. and several prominent impact investors, such as, Global Innovation Fund, DOB Equity, BestSeller Foundation, and Alpha Mundi.
Keiran Smith, Co-founder and CEO of Mr. Green Africa, commented, “We're excited about DFC's investment, enabling our flagship factory's development and laying the foundation for future replication of our business model into other regions and markets in the global south. Gratitude to all stakeholders who helped make this transaction happen, with special thanks to ICON and IMBC for their pivotal support. This marks a significant leap towards turning WASTE TO VALUE and make a fair and transparent localized circular economy in emerging markets common place.”
Monica Shupikai Simmons, Head of Africa at ICON Corporate Finance, commented, “We are delighted to have advised Mr Green Africa, the region’s leading plastic recycling company on its financing from the DFC. This funding is a positive step for the climate agenda, as it enables further expansion of Mr Green Africa’s business across East Africa and beyond.”
Edward Burbidge, Chief Executive Officer at I&M Burbidge Capital, commented, “We are pleased to have advised Mr. Green Africa on its debt capital raise. Mr. Green Africa is a unique, environmentally and socially impactful business in the Kenyan market, and we are pleased to have co-managed the process to match the Company with a high-profile, long-term financing partner.”