The Challenge

Treating, disposing of and recycling hard-to-handle waste is a complex and highly regulated task that can only be undertaken by certain licenced integrated waste management operators. There are only a few specialist operators in the UK that currently have the skills, knowledge, equipment, sites and permits in place to do this, of which Augean is one.

Across the UK, Augean operates 23 waste treatment and disposal facilities and notably owns ~40% of the remaining void in the UK that is permitted to safely store hard-to-handle waste. Due to the high barriers to entry, drive to protect the environment and increasingly stringent regulations, Augean has seen an increase in demand for its specialist waste management services over the last few years.

To meet this new demand, Augean needed to refinance and obtain new funds to enable the rollout of its services and expansion into new areas.

Execution

Based on its extensive experience in financing complex waste management projects, MUFG was brought on board by the sponsors Ancala and Fiera Infrastructure to participate in and support the refinancing process for Augean.

From the outset, MUFG worked closely with the other banking partners to put in place a bespoke financing structure that de-risked Augean's strategy and provided it with the capital to expand its service offering and operations globally.

The refinancing helped Augean to optimise its capital structure at attractive terms, reflecting the strength of the business and infrastructure-like characteristics, while also facilitating future growth via a dedicated Capex Facility.

Results

Expanding the integrated waste management sector is crucial to enhancing the UK's circular economy, and this has led to a surge in demand for the services of specialist operators such as Augean.

Despite the unique nature of Augean's services, MUFG was able to apply its deep waste sector knowledge to provide Augean with the capital it needed to expand operations and create new services. With the new funding, Augean is now in a position to meet increasing demand for its services and help facilitate the growth of the circular economy and improve environmental outcomes across the country.

For important information regarding sustainability and ESG considerations, please review our ESG Disclaimers here.