EMSTEEL's new green finance framework

EMSTEEL, one of the biggest publicly traded producers of steel and construction materials in the region, has announced the introduction of its first Green Finance Framework.

By putting EMSTEEL at the forefront of sustainable finance in the area, this initiative represents a significant step in coordinating the Group's financial strategy with its long-term sustainability and decarbonisation objectives.

Through the Framework, EMSTEEL and its affiliates can offer a range of green finance products in different currencies, such as green bonds, loans, commercial papers, and medium-term notes (MTNs).

Only suitable green projects that satisfy strict environmental requirements will be financed or refinanced with the proceeds.

Supporting new tech

These initiatives include the manufacturing of low-carbon cement and steel, energy-efficient technology, decarbonisation-promoting inventions, and renewable energy installations like solar photovoltaic systems.

The Framework, which was created in compliance with globally accepted best practices, guarantees a strong and open approach to the issuance, administration, and reporting of green finance instruments.

Investor trust in EMSTEEL's sustainability-focused capital strategy has increased as a result of Moody's Ratings' Second Party Opinion (SPO), which gave the Framework a Sustainability Quality Score of SQS2 (Very Good).

Strong regional collaboration in advancing sustainable finance is demonstrated by the Framework's development, which was supported by important partners such as First Abu Dhabi Bank (FAB) as Sustainability Structuring Bank and ING as Lead Sustainability Structuring Bank.

Commenting on the launch, Saeed Ghumran Al Remeithi, group CEO of EMSTEEL, stated, “Our Green Finance Framework is more than a financial tool – it is a strategic lever to accelerate our transition towards a low-carbon future. It reflects our commitment to aligning our fund raising activities with internationally recognised market standards for green financing and channelling funds toward environmentally responsible projects. Through this initiative, we aim to support the decarbonisation of our operations, foster innovation in low-carbon steelmaking and create long-term value for our shareholders, society, and the planet.”

Mark Tonkens, group chief financial officer, said, “The launch of our Green Finance Framework marks a pivotal step in reinforcing EMSTEEL’s commitment to sustainability. Aligning our financial strategy with global green finance standards enables us to secure funding for high-impact projects and positions us as a leader in the region’s transition to a low-carbon economy."