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The UAE’s Emirates Global Aluminium (EGA) is financing its US acquisition of aluminium recycling firm Spectro Alloys Corporation through a green loan facility with international banks.
EGA said the green loan facility will enable access to a larger liquidity pool to fund low-carbon projects while “optimising the cost of borrowing.”
EGA completed the acquisition of 80% of Spectro Alloys in September as part of its US expansion, which the company counts as one of its largest markets.
The Minnesota-based company is a secondary foundry alloy producer with a production capacity of around 110 thousand tonnes per year of aluminium ingots.
“Aluminium demand is expected to grow worldwide by up to 80% by 2050. Recycled and low-carbon primary aluminium are expected to account for around 60% 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,” said Abdulnasser Bin Kalban, CEO of Emirates Global Aluminium.
Citi, ING and Standard Chartered acted as joint Green Loan Coordinators on the financing.
In June 2024, EGA published its Green Finance Framework to support decarbonisation projects and revealed the first green loan facility to fund the acquisition of European speciality foundry, Leichtmetall.
The company is equally owned by Mubadala Investment Company of Abu Dhabi and the Investment Corporation of Dubai.
(Writing by Bindu Rai)