Emirates Global Aluminium (EGA), the largest industrial company in the United Arab Emirates, other than the oil and gas sector, has opted for a green loan to finance its acquisition of United States' business share.
In addition to its European acquisition, EGA has expanded its operations to the United States. The company completed the acquisition of an 80 per cent stake in Spectro Alloys, a leading secondary foundry alloy producer in the U.S., enhancing EGA's global presence and commitment to sustainable aluminium production.
In a statement, Abdulnasser Bin Kalban, Chief Executive Officer of EGA, said, "Aluminium demand is expected to grow worldwide by up to 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. Developing low-carbon projects, including a global business in recycling, is a key strategic priority for EGA to capitalise on market growth opportunities."
The deal is also expected to enhance EGA's competitiveness in the global aluminium market, while supporting the company's strategy to increase its focus on recycling and reduce its carbon footprint.
EGA has publicly committed to achieving net-zero greenhouse gas emissions by 2050, aligning with the UAE's Net Zero by 2050 strategic initiative. Global aluminium demand is projected to increase by 50 per cent to 80 per cent by 2050, with recycled and low-carbon primary aluminium expected to account for around 60 per cent of supply growth between now and 2030, and approximately 70 per cent between 2030 and 2040.
EGA's decision to opt for a green loan reflects the company's commitment to environmental sustainability and its efforts to reduce its environmental impact. The loan is expected to be repaid over a period of seven years, with the interest rate linked to EGA's environmental performance.
In 2022, the UAE manufacturer became one of the first in the GCC to establish sustainable corporate bank accounts. These accounts ensure that cash reserves are allocated to fund or refinance sustainability projects across the wider economy. Over the past three years, EGA has deposited approximately $180 million into these accounts, with an average cash balance of $25.5 million maintained.
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