By: The Working Forest Staff
Victoria, British Columbia — PRT Growing Services Ltd., the premier provider of critical growing services for container-grown forest seedlings in North America, and Instar Asset Management Inc., has announced the closing of $90 million in green loan facilities led by Royal Bank of Canada and HSBC Bank Canada to support the Company’s acquisition by Instar and future growth.
HSBC acted as Green Loan Coordinator for the financing, which included the National Bank of Canada and The Toronto-Dominion Bank. The facilities are compliant with the Global Loan Market Association’s Green Loan Principles, a set of market standards and guidelines that facilitate and support environmentally sustainable economic activity.
PRT is a pioneer in commercial-scale containerized growing processes for over 200 forest seedling species and is supported by a differentiated footprint of 21 growing and cold storage facilities across Canada and the United States. The Company’s services are core to rehabilitating invaluable forest land, mitigating the impact of climate change, and helping customers achieve regulatory compliance and reforestation objectives.
PRT is one of the first privately backed companies to join HSBC Canada’s green loan program, building on the Company’s commitment to environmental stewardship and role as an essential link in the forest sustainability supply chain.
“Sustainability is at the heart of our business purpose at PRT,” said Rob Miller, Chief Executive Officer of PRT. “Through our financing relationships and the support of Instar Asset Management, we are excited to expand PRT’s value offering for customers, communities, and the environment. Innovative financing provides green companies like PRT the flexibility to pursue growth in our core areas of operation, by helping customers meet reforestation targets, pursuing new initiatives in decarbonization and remediation, and mitigating the impact of climate change.”
“The need for sustainable forest management and ecosystem restoration has never been more apparent,” said Gregory Smith, President, and Chief Executive Officer, Instar Asset Management. “As initiatives like Canada’s commitment to planting an additional two billion trees over the next 10 years and the World Economic Forum’s One Trillion Trees program increase the demand for seedlings, we look forward to working closely with the PRT team, supporting decarbonization objectives and improving the resilience of our environment and communities.”
Globally, HSBC’s green loans support businesses seeking to transition to a more climate-friendly, low-carbon future by encouraging investments in projects that provide clear environmental benefits and contribute to sustainable growth.
These projects may include but are not limited to renewable energy, pollution prevention, clean transportation, sustainable water and wastewater management, and climate change adaptation. Green loans are part of HSBC’s pledge to provide between USD750 billion and USD1 trillion of finance and investment towards the transition.