Hanjer BioTech Energies to raise $40 million from European funds

MUMBAI: IDFC-backed Hanjer BioTech Energies, which uses technology to recycle municipal solid waste into green products, is close to raising about $40 million (Rs 225 crore) from European funds, said bankers close to the deal.

The company is in final stages of talks with German investment and development company DEG and France’s Proparco to raise long-term debt, said the same sources. Hanjer BioTech will use the fund to set up multiple municipal solid waste processing plants with capacity of about 5,000 tonne per day.

Currently, it has 24 operating facilities across 19 cities in India with a total capacity of 9,100 tonne per day. The company has another 2,200 tonne per day capacity expansion under implementation and an additional 3,000 tonne per day is at bidding stage.

When contacted by ET, Irfan Furniturewala, promoter, Hanjer Bio-Tech, said the transaction is likely to be completed soon. He declined to divulge any further details.

The fund will be a part of the total debt facility amounting to Rs 291 crore, which has been underwritten and arranged by Yes Bank. This will take Hanjer’s total term loans and working capital loans to nearly Rs 400 crore.