Carbios raises €141m to boost enzymatic PET recycling

Carbios has announced a capital increase of €141m in cash with preferential subscription rights through the issue of 5,558,695 new shares at a subscription price of €25.32 per share.

Emmanuel Ladent, CEO of Carbios stated, “the success of this transaction is aligned with our collective challenge: fighting plastic pollution. Carbios intends to become a leader in the fast-growing recycled PET market.” While chemical methods compete with Carbios’ enzymatic PET de-polymerisation/re-polymerisation approach, PET recycling through 20 cycles is just the beginning. According to Ladent has already identified and is optimizing enzymes that can degrade polyethylene and other commodity plastics.

Former France Biotec head and Truffle Ventures investor Philippe Pouletty, Chairman of the Board of Directors of Carbios adds: “This successful capital increase in a difficult market environment confirms Carbios’ ambition to become a world leader in the circular economy of plastics to preserve the planet.”

Approximately 85% of the net proceeds will be used to finance the construction of the first plant, with an estimated processing capacity of 50,000 tonnes a year and an estimated investment of approximately €230 million. In this respect, it is specified that the proportion of the investment in the first plant not funded from the net proceeds of the issue will be funded through financing to be received from Indorama Ventures (around €110m), subsidies from the French government (€30 m) and from the Grand-Est Region (€12.5m) and by part of the company’s available cash (totalling €83mas at 31 May 2023).

The remainder of the net proceeds will be used to finance expenses related to its PET R&D activities and to step up research on other polymers and/or further applications of its technologies.