EMSTEEL Launches Green Finance Framework to Fund Low-Carbon Steel, Cement, and Renewable Energy Projects
- EMSTEEL can now issue green bonds, loans, and other instruments to finance renewable energy and low-carbon manufacturing.
- The framework earned a “Very Good” sustainability rating from Moody’s, strengthening investor confidence.
- EMSTEEL targets a 40% reduction in steel-related emissions and 30% in cement by 2030.
EMSTEEL, one of the region’s largest publicly traded steel and building materials manufacturers, has launched its first Green Finance Framework—a decisive move to align capital raising with its net-zero roadmap.
The framework allows EMSTEEL and its subsidiaries to issue a range of green financial instruments—including green bonds, loans, commercial papers, and medium-term notes (MTNs)—across multiple currencies. Proceeds will be used exclusively for eligible green projects, including low-carbon steel and cement production, solar PV installations, energy efficiency upgrades, and decarbonisation innovation.
“Our Green Finance Framework is more than a financial tool – it is a strategic lever to accelerate our transition towards a low-carbon future,” said Engineer Saeed Ghumran Al Remeithi, Group CEO. “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.”
The framework has received a Sustainability Quality Score of SQS2 (Very Good) from Moody’s Ratings, adding credibility and transparency to EMSTEEL’s approach.
RELATED ARTICLE: Trane Sources Low Carbon Steel for HVAC Products
“The launch of our Green Finance Framework marks a pivotal step in reinforcing EMSTEEL’s commitment to sustainability,” added Mark Tonkens, Group CFO. “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.”
ING served as Lead Sustainability Structuring Bank, with First Abu Dhabi Bank (FAB) as Sustainability Structuring Bank—highlighting robust regional collaboration.
The framework underpins EMSTEEL’s wider ESG strategy, which includes ambitious 2030 targets to cut greenhouse gas emissions by 40% in steel production and 30% in cement.
Follow ESG News on LinkedIn
