Philippine steelmaker SteelAsia Manufacturing Corporation announced that it has received a green loan worth PHP 1.25 billion (USD 20.30 million) from Taiwan's Cathay United Bank. The financing will support the expansion of its low-carbon steel operations in the Philippines.
Financing to support EAF steel production
SteelAsia said the proceeds from the green loan will be used as working capital for its electric arc furnace (EAF) production facilities. The company noted that its steel production uses scrap recycling and renewable energy to produce low-emission steel products.
Its Kalaka steel plant has been producing green steel since 2008, according to SteelAsia. Norway's DNV has reportedly rated the plant as one of the world's lowest carbon steel plants, with a carbon footprint some 90 percent below the global average for traditional steel production routes.
Low emission model to be replicated at new plants
SteelAsia said it plans to apply the same low emission production model at its future steel plants. These include the Philippines' first mid-rolling plant in Lemery, Batangas, which is expected to begin operations later this year.
The company said the framework is intended to guide future sustainability-related financing initiatives through clearly defined environmental goals, governance standards and transparency requirements.
