EGA Secures Green Loan for U.S. Aluminium Acquisition
Deal News | Dec 26, 2024 | Zawya
Emirates Global Aluminium (EGA), the world's largest premium aluminium producer, has financed its recent majority acquisition of American company Spectro Alloys through a green loan facility. The acquisition of an 80% stake in the U.S.-based aluminium recycling firm is part of EGA's strategic expansion to enhance its low-carbon footprint and satisfy increasing global aluminium demand. The transaction, completed in September 2024, sees Spectro Alloys—a leading secondary foundry alloy producer with a significant production capacity—integrated into EGA’s broader strategy for environmental sustainability. Significant parts of this transaction were facilitated by a green loan set up by international banks such as Citi, ING, and Standard Chartered. EGA's approach to funding also links with their Green Finance Framework, which was developed to support decarbonisation projects and foster liquidity for environmentally sustainable initiatives. Operating across several continents, EGA continues to play a significant role in the global aluminium sector and aims to grow through technology development, sustainability initiatives, and international expansion.
Sectors
- Aluminium Production and Recycling
- Green Financing
Geography
- United Arab Emirates – EGA, based in the UAE, is the main subject of the article and a leader in the aluminium industry.
- United States – The acquisition target, Spectro Alloys, is located in Rosemount, Minnesota, marking EGA's expansion into the US aluminium market.
Industry
- Aluminium Production and Recycling – The article focuses on Emirates Global Aluminium, a major player in the aluminium production and recycling industry, marking its expansion into the US market through the acquisition of Spectro Alloys.
- Green Financing – The use of a green loan facility to fund EGA's acquisition highlights the financial industry's increasing focus on sustainable and environmentally responsible investment practices.
Financials
- 80% – The percentage of Spectro Alloys acquired by EGA.
- $180 million – The total amount EGA has deposited in sustainable corporate bank accounts over the past three years.
- $25.5 million – The average cash balance EGA maintains in sustainable corporate bank accounts.
- 2.75 million tonnes – The volume of cast metal EGA sold in 2023.
- 110 thousand tonnes – Annual production capacity of aluminium ingots by Spectro Alloys.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Emirates Global Aluminium (EGA) | Acquirer | Company | EGA is the world's largest premium aluminium producer and an integrated aluminium producer with operations from bauxite mining to recycling. |
| Spectro Alloys Corporation | Target | Company | Spectro Alloys is a leading secondary foundry alloy producer based in Rosemount, Minnesota, USA. |
| Citi | Green Loan Coordinator | Company | One of the international banks involved in coordinating the green loan facility for EGA's acquisition. |
| ING | Green Loan Coordinator | Company | One of the international banks involved in coordinating the green loan facility for EGA's acquisition. |
| Standard Chartered | Green Loan Coordinator | Company | One of the international banks involved in coordinating the green loan facility for EGA's acquisition. |