 |
| Emsteel |
UAE-based firm targets low-carbon investments with green bonds and loans backed by Moody’s-rated program.
Emsteel, the parent company of Emirates Steel, has introduced the UAE’s first green finance framework, enabling it to issue green bonds, loans, and medium-term notes (MTNs) to fund sustainable industrial projects. The initiative aims to accelerate the company’s transition to a low-carbon economy while bolstering international investor confidence.
The program will finance projects in low-emission steel and cement, solar power, and energy-efficient technologies, meeting global green finance standards. CEO Saeed Humran Al Remeiti emphasized that this is “not just a financial instrument, but a strategic lever” for decarbonization.
Rated “Very Good” (SQS2) by Moody’s Ratings, the framework was developed in partnership with ING as the lead sustainable structuring bank and First Abu Dhabi Bank as a regional partner.
The initiative supports Emsteel’s climate targets to cut steel sector emissions by 40% and cement sector emissions by 30% by 2030. Emirates Steel, a key subsidiary, is the only steel producer in the GCC to pilot green hydrogen for steel production in 2024.
Operating 16 facilities with annual output of 3.5 million tons of steel and 4.6 million tons of cement, Emsteel commands a 60% share of the UAE’s steel market, exporting to over 70 countries. From 2020 to 2024, it increased innovation and investment spending by 127%, reinforcing its role in Abu Dhabi’s industrial growth, where it holds a 10% share of the manufacturing sector.
This green finance framework positions Emsteel as a leader in sustainable industrial finance across the GCC and global metals industry.
Tags
STEEL
