Redivium Secures €25 Million with 10% Green Bonds to Fund UK and EU Recycling Projects

A Strategic Green Bond Milestone

Redivium Limited (ASX:RIL) has marked a significant step in its sustainable growth journey with the successful completion of all formalities to list €25 million (approximately AUD 40.76 million) in green debenture bonds through its wholly-owned Irish subsidiary, Redivium Europe Limited. This issuance is designed to underpin the company’s ambitious battery recycling expansion across Europe, reinforcing its commitment to environmental, social, and governance (ESG) principles.

The green bonds, set to be issued on 28 February 2025 with an eight-year maturity, offer investors a 10% annual coupon paid semi-annually. Secured by a pledge of shares in Redivium Europe Limited, the bonds will be listed primarily on the Vienna Stock Exchange, with a secondary listing planned on the Frankfurt Stock Exchange, broadening their accessibility to European investors focused on sustainable finance.

Funding the Circular Economy

The proceeds from this green bond issuance will be strategically deployed to accelerate the development of Redivium’s UK battery recycling facility, a cornerstone project aimed at delivering ESG-compliant urban mining solutions. This facility, located in Chester, northwest England, is expected to play a pivotal role in safely processing lithium-ion battery waste and recovering valuable materials such as lithium, nickel, and copper for reuse in new battery production.

Beyond the UK, Redivium plans to advance its European project pipeline, targeting new battery recycling initiatives in the Czech Republic and Romania. These efforts align with the company’s broader vision to enhance operational capacity, reduce lead times, and increase efficiency in recycling activities, all while supporting the circular economy and Europe’s energy transition goals.

Market Context and Strategic Rationale

Redivium’s green bond issuance comes at a time when the European lithium-ion battery recycling market is poised for rapid growth, with forecasts projecting a compound annual growth rate (CAGR) of 19.3%, reaching over US$3 billion by 2031. The company’s access to advanced recycling technologies licensed from Neometals Ltd and SMS Group GmbH positions it well to capitalize on this expanding market.

In addition, the issuance supports compliance with the European Union’s Critical Raw Materials Act (CRMA), which streamlines permitting processes for strategic projects like battery recycling. This regulatory backdrop enhances Redivium’s ability to execute its projects efficiently and meet the increasing demand for recycled battery materials driven by the automotive electrification trend.

Investor Support and Future Outlook

Redivium’s lead placing agent for the bond is Germany’s 624 InvestServices AG, and the company has secured a non-binding Letter of Intent from its materials product offtaker, WMC Energy BV, for a potential €2 million subscription. Executive Director Michael O’Leary-Collins expressed optimism about the support received, emphasizing the bond’s role in establishing Redivium as a leading battery materials producer in Europe.

As the company progresses, investors will be watching closely for updates on project milestones and the operational status of the green bond listings. The successful deployment of funds and execution of projects will be critical in validating Redivium’s strategic positioning within the sustainable battery recycling sector.