Avantium secures €35 million financing package to drive sustainable plastics ambition

Avantium, a company specialising in technologies for sustainable chemicals and plastics, has secured a new financing package of around €35 million.

Headquartered in Amsterdam, Avantium is a listed company (AScX) focused on renewable & circular polymer materials. The firm develops and commercialises technologies to produce materials from sustainable carbon feedstocks, such as biomass and CO2. Avantium also has pioneered a technology that can convert plant-based sugars into furandicarboxylic acid (FDCA), the key building block for the sustainable plastic PEF (polyethylene furanoate).

To support the company’s continued development, Avantium yesterday announced a series of financial deals aimed at strengthening its capital position and freeing up investment capacity for its just launched FDCA Flagship Plant in Delfzijl.

The package includes a €20 million increase in its debt financing facilities from a consortium of lenders (ABN AMRO Bank, ASN Bank, ING Bank, Rabobank, and Invest-NL), a €5 million convertible loan from Dutch entrepreneur Pieter Kooi, (an existing shareholder in Avantium), and a subordinated loan of up to €10 million by the Province of Groningen.

Additionally, Avantium raised around €11.2 million through an accelerated bookbuild offering, which saw the company sell around 8% of its total shares.

Meanwhile, the Dutch company also extended the maturity data of its €105 million debt financing facilities from March 2025 with one to two years.

Commenting on the milestone, Boudewijn van Schaïk, CFO of Avantium, said: “In order to fund the next part of our journey, we are pleased to announce that we have secured additional financing. This funding will enable us to focus on the next growth stage and work towards shipping the first commercial volumes of FDCA and PEF.”

The largest chunk of the additional funding will flow to the FDCA Flagship Plant in Delfzijl, which was formally opened in October this year. The world’s first commercial plant of its kind, the plant will produce 5 kilotons of FDCA and sell the product under the Releaf brand to major plastic manufacturers and users worldwide, with bottles, packaging, and textiles the main segments being focused on.

“Releaf is a revolutionary material set to transform the plastics industry. It offers a viable alternative to traditional petroleum-based plastics,” said Avantium CEO Tom van Aken.

The different financial deals, which come just two months after Avantium bagged a €3.5 million grant from the EU Horizon Europe program, were advised on by a cohort of bankers, consultants and lawyers. These included banks ABN AMRO, ODDO BHF, Avaxa Debt Advisors, Bryan, Garnier & Co, A&O Shearman and Clifford Chance.