Emirates Global Aluminium (EGA), the world’s largest producer of ‘premium aluminium,’ has announced that its acquisition of a majority stake in the American aluminium recycling firm Spectro Alloys Corporation has been financed through a green loan facility secured with international banks.
The green loan facility, coordinated by Citi, ING, and Standard Chartered, allows EGA to access a broader liquidity pool for funding low-carbon projects while optimising borrowing costs. This marks another significant step in EGA’s commitment to sustainability and its strategic focus on decarbonisation initiatives.
EGA acquired an 80% stake in Spectro Alloys in September 2024. Based in Rosemount, Minnesota, Spectro Alloys is a prominent producer of secondary foundry alloy, with a production capacity of 110,000 tonnes of aluminium ingots per year. The acquisition has bolstered EGA’s expansion into aluminium recycling and strengthened its footprint in the United States, one of its largest global markets.
Abdulnasser Bin Kalban, CEO of EGA, commented: “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. 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.”
The announcement follows EGA’s publication of its Green Finance Framework in June 2024, which supports decarbonisation efforts. EGA previously utilised a green loan facility to fund its acquisition of the European speciality foundry Leichtmetall.
Additionally, EGA has been a pioneer in the region’s sustainability finance landscape. In 2022, the company introduced sustainable corporate bank accounts, ensuring cash reserves are used to finance or refinance green initiatives. Over the past three years, EGA has maintained an average cash balance of $25.5 million in these accounts, with total deposits reaching $180 million.
