STEELASIA Manufacturing Corp. on Friday said that it had secured a P1.25-billion green loan facility from Taiwan-based Cathay United Bank to support its green steel initiatives.
“The green loan represents more than a milestone for the company — it is a sign that we are indeed on the right track in our expansion strategy,” SteelAsia President and Co-CEO Rafael Hidalgo said.
“Steel production with low carbon dioxide emission is not only sustainable for the environment, it is also the foundation upon which we are building the country’s steel industry,” he added.
This is SteelAsia’s first green loan under its Sustainable Finance Framework aimed at ensuring the firm’s application of clear sustainability objectives, transparency, and strong corporate governance in the use of proceeds.
The proceeds from the green loan facility would be used as working capital for SteelAsia’s operations, which utilize electric arc furnace technology combined with renewable energy and scrap recycling to enable the production of low carbon dioxide emission green steel.
SteelAsia’s Calaca mill, which has been producing green steel since 2008, has been assessed by DNV of Norway as one of the greenest steel facilities in the world, with a carbon footprint of approximately 90 percent lower than the global average for traditional steelmaking.
SteelAsia’s expansion plans involve new green steel mills in Batangas, Quezon, and Tarlac in the next four years, planning to avoid 7 million tons of CO2 emissions annually.
