Emirates Global Aluminium (EGA), a titan of UAE industry outside the oil and gas sector, has taken a significant step towards its sustainability goals. The company announced that its recent acquisition of Leichtmetall, a European specialty foundry, was financed entirely through its first-ever green loan facility.

Financial details of the acquisition remain undisclosed, but the innovative use of green financing underscores EGA's commitment to environmental responsibility. Leichtmetall's operations in Germany align perfectly with EGA's sustainability objectives. The European foundry boasts an annual production capacity of 30, 000 tonnes of aluminium billets, with a noteworthy 80% of its input material sourced from recycled aluminum. Additionally, Leichtmetall leverages renewable energy sources to power its production processes, further minimizing its environmental footprint.

This strategic acquisition not only bolsters EGA's presence in the European market, where it already exports over 600, 000 tonnes of primary aluminum annually, but also furthers the company's sustainability agenda. "Our utilization of green financing for the Leichtmetall acquisition represents another pioneering step on EGA's path to sustainability, " declared EGA's Chief Executive Officer, Abdulnasser Bin Kalban.

The green loan facility is a direct result of EGA's recently established Green Finance Framework. This framework outlines the eligibility criteria and governance mechanisms for securing funding from institutions prioritizing sustainability in their investment strategies. The framework serves a dual purpose:expanding EGA's access to a wider pool of potential lenders for loans and bonds, potentially leading to reduced borrowing costs, while simultaneously ensuring transparency in the allocation of these funds.

EGA partnered with leading financial institutions to develop and execute this groundbreaking initiative. Citigroup and ING acted as the lead sustainability structuring banks, while First Abu Dhabi Bank (FAB) provided crucial support in the framework's development. This collaboration between EGA and the financial sector reflects a growing commitment to sustainable practices within the aluminum industry.

EGA's green loan-financed acquisition is a noteworthy development, showcasing the company's dedication to forging a sustainable future for the aluminum industry. The strategic utilization of green financing paves the way for further innovation and paves the way for a more eco-conscious industry.