The Emirates Global Aluminium (EGA) has announced the launch of its Green Finance Framework, which it said will support decarbonisation projects and initiatives.
Such frameworks define eligibility and governance mechanisms for financing from third-party institutions and funds that prioritise sustainability in their capital allocation, among other sources.
EGA shared that this will enable the company to access a more diverse range of funding options for loans and bonds, potentially lowering the cost of borrowing while ensuring increased transparency.
Citi and ING acted as the lead sustainability structuring banks, while First Abu Dhabi Bank (FAB) served as the sustainability structuring bank to support EGA in the framework’s development.
The company shared that its recent acquisition of European speciality foundry Leichtmetall was fully funded with EGA’s first green loan facility.
Leichtmetall uses renewable energy to produce up to 30,000 tonnes per year of aluminium billets at its plant in Germany. Secondary aluminium comprises some 80 per cent of the input material, it was shared.
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,” added EGA’s CEO.