Emirates Global Aluminium (EGA) has announced its Green Finance Framework today, aimed at supporting projects and initiatives that promote the transition to a low-carbon economy. Additionally, EGA disclosed that it funded its recent acquisition of European speciality foundry Leichtmetall using its inaugural green loan facility.
The green finance framework establishes criteria and oversight mechanisms for securing financing from external entities and funds that prioritise sustainability in their capital allocations.
By releasing this framework, EGA advances its sustainability objectives by expanding access to a wider range of funding options for loans and bonds. This move could potentially reduce borrowing costs while ensuring greater transparency.
Citi and ING served as the primary sustainability structuring banks, with First Abu Dhabi Bank (FAB) supporting EGA in developing the framework.
EGA has publicly committed to achieving net zero greenhouse gas emissions by 2050, aligning with the UAE’s strategic initiative of Net Zero by 2050.
Global demand for aluminium is projected to increase by 50% to 80% by 2050. During this period, recycled and low-carbon primary aluminium are expected to contribute approximately 60% of supply growth by 2030 and about 70% by 2040.
In May, EGA finalised its acquisition of Leichtmetall. The German plant, which utilises renewable energy, produces up to 30,000 tonnes of aluminium billets annually, with secondary aluminium accounting for around 80% of its input materials.
Abdulnasser Bin Kalban, CEO of Emirates Global Aluminium, commented, “Aluminium produced by EGA is pivotal in fostering a more sustainable society. Equally crucial is the sustainable manner in which it is manufactured. This presents both a significant opportunity and challenge for EGA and the broader industry. Our Green Finance Framework enables us to secure deeper liquidity to fund projects that drive our decarbonisation objectives. Using green financing for our Leichtmetall acquisition marks another milestone in our sustainability journey.”
Separately, in 2023, EGA introduced the UAE manufacturing sector’s inaugural ESG-linked supply chain finance programme to enhance sustainability across its supply chain. Since October of the previous year, the programme has extended $73M in financing to EGA’s suppliers.
In 2022, EGA was among the first companies in the region to establish sustainable corporate bank accounts, ensuring that cash balances support sustainability initiatives across the economy. Over the past 20 months, EGA has deposited a total of $76M into these accounts, maintaining an average cash balance of $25M.
