Emirates Global Aluminium Used Green Loans for German Foundry Acquisition

Emirates Global Aluminium Acquires European Foundry Using Green Loan, Pioneering Sustainable Finance

Dubai: Emirates Global Aluminium (EGA), a prominent industrial entity based in the UAE, recently finalized the acquisition of a European foundry using its first green loan facility, marking a significant milestone in the company’s commitment to sustainable finance and environmental stewardship.

EGA completed the acquisition of Leichtmetall last month, an established mill in Europe renowned for its use of renewable energy in the production of aluminium billets. Located in Germany, Leichtmetall specializes in producing up to 30,000 tonnes annually, with approximately 80% of its input material derived from secondary aluminium sources. This acquisition not only expands EGA’s global footprint but also enhances its capacity to meet growing global demand for aluminium, which is projected to rise between 50% to 80% by 2050.

In a statement, EGA emphasized the strategic importance of incorporating sustainable practices into its operations. The company highlighted that recycled and low-carbon primary aluminium are expected to contribute significantly to future supply growth, comprising about 60% by 2030 and around 70% by 2040. This underscores the critical role of sustainable production methods in meeting global aluminium demand while mitigating environmental impact.

To bolster its commitment to sustainability, EGA introduced its ‘Green Finance Framework,’ a comprehensive strategy designed to guide future financing initiatives. The framework focuses on supporting decarbonisation projects and initiatives aimed at advancing the transition to a low-carbon economy. By establishing clear criteria and governance mechanisms, EGA aims to attract financing from institutions and funds that prioritize sustainability, thereby diversifying its funding sources and enhancing transparency in financial operations.

Publishing the green finance framework represents a significant step forward for EGA in achieving its sustainability goals. The framework not only facilitates access to a wider range of financing options for loans and bonds but also potentially reduces borrowing costs while ensuring greater accountability and transparency in financial reporting.

EGA’s adoption of green financing for the Leichtmetall acquisition underscores its proactive approach to integrating environmental considerations into strategic business decisions. By leveraging renewable energy sources and promoting low-carbon production methods, EGA sets a precedent for sustainable practices within the aluminium industry. This strategic alignment not only strengthens EGA’s market position but also reinforces its role as a leader in sustainable development in the Middle East and globally.

EGA’s utilization of green loans to fund the acquisition of Leichtmetall exemplifies its commitment to sustainability and responsible corporate citizenship. As EGA continues to implement its green finance framework, it is well-positioned to drive innovation, support environmental stewardship, and contribute positively to the global transition towards a more sustainable future.