Aluminium Dunkerque unlocks milestone with the $375 million green deal led by Societe Generale

Aluminium Dunkerque SAS ("AD") and its parent company, Aluminium Dunkerque Industries France SAS ("ADIF"), have achieved a substantial milestone in their journey towards sustainability and financial strength. They have recently successfully refinanced their current debts through new bank lending facilities totalling $375 million. This strategic step highlights AD's dedication to environmental responsibility and reinforces its prominent position as a frontrunner in the European aluminium industry.

About the agreement

The newly secured financing agreements are notable for including environmental targets directly within the loan terms. AD and ADIF will enjoy lowered interest rates as they achieve specific milestones in reducing carbon emissions and enhancing water usage efficiency. This financial framework, developed by Societe Generale in collaboration with a consortium of European and American banks, signifies a crucial move towards aligning corporate finance with sustainability objectives.

Under the terms of the new agreements, AD has acquired a $125 million Revolving Credit Facility, while ADIF has secured a $250 million Term Loan. These facilities not only replace the companies' previous debts but also retire the bonds issued by ADIF in 2021. Guillaume de Goÿs, CEO of AD and ADIF, praised the refinancing as a crucial move to support the companies' growth aspirations amid fluctuating global interest rates. He emphasised the new credit lines' substantial liquidity and operational adaptability, positioning Aluminium Dunkerque to capitalise on its industry-leading efficiencies and minimal carbon footprint.

About Aluminium Dunkerque

Established in 1991, Aluminium Dunkerque has become one of Europe's largest aluminium smelters, boasting a production capacity of 286,000 tonnes annually. The company plays a vital role in fulfilling the demand for aluminium slabs and ingots across key sectors such as transport, automotive, packaging, and construction. The success of Aluminium Dunkerque is credited to its unwavering dedication to operational excellence and environmental accountability and its workforce, which exceeds 700 employees.

Aluminium Dunkerque continues to set industry benchmarks, owned by American Industrial Partners Capital Fund VII, L.P., alongside its operational management. This strategic financial manoeuvre secures the company's future growth and showcases the growing integration of sustainability criteria in corporate financing. By tying loan conditions to environmental performance, AD and ADIF are trailblazing a path that others in the industry may soon follow.

As global markets place increasing value on green initiatives, Aluminium Dunkerque's approach could signal a new era where financial stability and environmental stewardship are interconnected, fostering a more sustainable and resilient industrial landscape.