European Depositary Bank has granted a revolving credit facility to Econnext, EDB announced on Tuesday 5 September 2023.
The announcement did not disclose the amount of the credit line and what the funds would be used for. It was the second credit facility issued to a sustainability-focused firm that EDB has announced in the past week. The bank extended a $7.5m revolving credit facility to investment outfit I(x) Net Zero on 31 August.
EDB positions itself as one of the largest providers of depositary services for regulated Ucits and alternative funds in Europe. The bank oversaw €180.9bn in assets under depositary and €24.2bn in assets under custody, as of 30 June 2023. It has 210 staff in the grand duchy. It is a subsidiary of Apex Group, a major corporate and fund services player in Luxembourg.
Founded in 2016, Econnext aims to exert a durable, scalable and financially rewarding influence on the environment, in line with the United Nations sustainable development goals. Its investors include high-profile European business leaders, entrepreneurs and angel investors such as members of the Brenninkmeijer, Siemens and Mohn families.
The company holds majority stakes in Autarq (solar roof tiles), Circular Carbon (carbon removal technology), ESG Screen17 (sustainability screening of investment portfolios), Flaxtec (solar module recycling), Grips Energy (renewable energy supply) and Lumenion (renewable heating and cooling through energy storage) as well as a minority stake in Ambibox (e-mobility and decentralised energy systems).
Martin Thoelen, global head of strategic development at Apex Group, said, “We are proud to be supporting Econnext through both our financing capabilities as well as with facility and security agency services as they continue their pioneering work to build impactful and profitable companies which drive positive social and environmental change.”
Michael Schneider, co-founder and co-CEO of Econnext, stated, “Strong partnerships are essential to driving the energy transition. Instead of deemed costs to society, scaling climate tech and circular economy solutions represents not only a profitable long-term investment case but can also help secure livelihoods and democratic freedoms for future generations.”
Legal advisers for this transaction included the international law firm McDermott Will & Emery for EDB, while Econnext AG tapped Qbera Capital and received legal counsel from Hogan Lovells Frankfurt.