EGA Secures Green Loan Facility for US Acquisition

Emirates Global Aluminium (EGA), the world’s largest producer of premium aluminium, has announced the successful funding of its majority acquisition in Spectro Alloys Corporation, a prominent American aluminium recycling firm. The funding was facilitated through a green loan facility arranged with international banks, underscoring EGA’s commitment to sustainable growth.

Green Loan Facility: Enhancing Liquidity and Sustainability

The green loan facility provides EGA with access to an expanded liquidity pool, specifically earmarked for financing low-carbon initiatives. This innovative approach not only optimises borrowing costs but also aligns with global sustainability goals, ensuring that EGA’s investments contribute to a greener future.

Strategic Acquisition of Spectro Alloys

EGA finalized the acquisition of an 80% stake in Spectro Alloys in September 2024. Based in Rosemount, Minnesota, Spectro Alloys is a leading producer of secondary foundry alloys, with an annual production capacity of approximately 110,000 tonnes of aluminium ingots. This acquisition significantly enhances EGA’s global footprint in aluminium recycling and strengthens its presence in the United States, one of its largest international markets.

Citi, ING, and Standard Chartered played pivotal roles in coordinating the green loan facility. Their expertise ensured the seamless integration of sustainability principles into the financial structuring of the deal.

Abdulnasser Bin Kalban, Chief Executive Officer of Emirates Global Aluminium, 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 green loan facility to fund our acquisition of Spectro Alloys enables us to access a deeper pool of liquidity to finance projects that contribute to the transition to a low-carbon economy.”

EGA’s Commitment to Green Financing

In June 2024, EGA launched its Green Finance Framework to drive decarbonisation projects. The framework facilitated the first green loan facility, which was used to acquire the European speciality foundry, Leichtmetall. These initiatives reflect EGA’s proactive stance in aligning its operations with global sustainability standards.

Pioneering Sustainable Banking Practices

EGA has been a regional leader in sustainable corporate banking since 2022, when it introduced sustainable bank accounts. These accounts channel cash balances into financing or refinancing sustainability projects across various sectors. Over the past three years, EGA has deposited a total of $180 million into these accounts, maintaining an average balance of $25.5 million.

Driving Sustainable Growth

EGA’s latest acquisition and green financing initiatives underscore its dual focus on business expansion and environmental responsibility. By integrating sustainability into its operations and financing strategies, EGA continues to set a benchmark for the global aluminium industry.