EBRD lends EUR 15 million to recycled plastic pellet producer ECSO in Lithuania

The European Bank for Reconstruction and Development (EBRD) is lending EUR 15 million to ECSO, a leading Lithuanian producer of plastic granules, using 100 per cent recycled material.  Ellex in Lithuania advised the EBRD in the various stages of this transaction – from the due diligence of the project in its initial stage to the signing of the loan documentation, especially safeguarding the lender’s interest while creating a complex local security structure.

ECSO – owned by the ESG transformation specialist private equity investor and B Corp, Abris Capital Partners –  produces pelletized polymer (LDPE) granules using recycled industrial and household plastic waste, which are then used in the production of products such as plastic packaging and bags.

The EBRD’s partnership with ECSO will support the company’s capital expansion plans, which are aimed at implementing new solutions such an automatic sorting centre for waste input, and the improvement of product filtration systems, quality control and water filtration systems. These solutions will lead to a more efficient production process and improve the quality of ECSO’s products.

The EBRD team was advised by Associate Partner Eglė Neverbickienė, Associate Ainis Augustas Petrulis, and expert Tadas Kavaliauskas.

The EBRD is a leading institutional investor in Lithuania. To date the Bank has invested more than €1.4 billion in 123 projects in the country, the majority of which has been in the private sector. Supporting the green economy transition and improving the competitiveness of its private sector are two key priorities for the EBRD’s work in Lithuania.