£14m helps power Greenergy’s growth and renovation plans
- £14m helps enable Greenergy to fund business critical assets at two of its sites
- Lombard’s funding assists Greenergy’s growth
- Greenergy expands geographic footprint across UK fuel supply and storage sector
Greenergy International Ltd was founded in 1992 and has since become one of the UK’s leading road fuel suppliers. It manages efficient fuel supply chains to source and deliver fuel, and is a national provider of road fuel and related services. Its customers include major oil companies, supermarkets and bus and logistics companies.
For the past five years, Greenergy has grown at an average rate of nearly 60% per year and has been repeatedly placed among Britain’s largest and fastest growing privately owned companies. To support its expansion it wanted to invest £7m in new facilities on its Teesside site, as well as a further £7m to refurbish its fuel storage terminal in Plymouth.
Greenergy’s Stephen McCaffrey explains, "We'd previously used development finance, but found it burdensome, limited, and expensive. We were introduced to Lombard through The Royal Bank of Scotland and Lombard’s asset finance facility not only provided the funding, but also the understanding of our business and industry. This was incredibly important to us especially when financing an asset within a commodity based industry. Lombard was able to appreciate its real value."
Lombard created two tailored finance solutions, totalling £14m. Peter Thompson, Lombard Relationship Director, explains, "The funding enabled Greenergy to invest in the business without using up working capital, which as a trading company with new contracts coming in, was incredibly important for the customer."
Thompson continues, "The funding for the Plymouth site was straightforward, as the company owns the site. However the Teesside location was operating on land held by a third party. As a team we were able to work out the ownership divisions of the land, manage the proposed funding through Lombard credit and secure the finance efficiently."
According to McCaffrey, Lombard was key in Greenergy’s investment plans and its funding enabled Greenergy to expand its geographical footprint and renovate an existing site. The whole process was made easier by Lombard’s expertise, understanding of the industry and the efficiency of its asset finance service.
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