The Emirates Global Aluminium (EGA) today published its Green Finance Framework to support decarbonisation projects and initiatives that contribute to the transition to a low-carbon economy.
The company's acquisition of Leichtmetall was funded by EGA's first green loan. A green finance framework supports sustainable capital allocation, enhancing EGA's sustainability goals by diversifying funding options and potentially lowering borrowing costs while ensuring greater transparency.
Citi and ING acted as the lead sustainability structuring banks and First Abu Dhabi Bank (FAB) acted as the sustainability structuring bank to support EGA in the framework’s development.
EGA has publicly committed to reaching net zero greenhouse gas emissions by 2050, in line with the UAE Net Zero by 2050 strategic initiative.
Aluminium demand is expected to grow worldwide by between 50 per cent and 80 per cent by 2050. Recycled and low-carbon primary aluminium are expected to account for around 60 per cent of supply growth between now and 2030, and around 70 per cent of supply growth between 2030 and 2040.
EGA completed the acquisition of Leichtmetall in May. Leichtmetall uses renewable energy to produce up to 30,000 tonnes per year of aluminium billets at its plant in Germany, with secondary aluminium comprising some 80 per cent of the input material.
Abdulnasser Bin Kalban, Chief Executive Officer of Emirates Global Aluminium, said:
“The aluminium EGA produces plays an essential role in the development of a more sustainable society. It is also important how sustainably it is produced. This is both an enormous opportunity and a significant challenge for EGA and our wider industry. Our Green Finance Framework enables us to access a deeper pool of liquidity to finance projects and initiatives that advance our decarbonisation goals. Our use of green financing for our recent acquisition of Leichtmetall is another first for EGA in our sustainability journey.”
In 2023, EGA launched the UAE's first ESG-linked supply chain finance program, providing $73 million to suppliers. In 2022, EGA opened sustainable corporate bank accounts, depositing $76 million over 20 months, with an average balance of $25 million, to support sustainability initiatives.
News Source: Emirates News Agency
