Philippines-based steelmaker SteelAsia Manufacturing Corporation has announced that it has secured a PHP 1.25 billion ($20.30 million) green loan facility from Taiwan-based Cathay United Bank.The financing will support the expansion of its low-carbon steelmaking operations in the Philippines.
Financing to support EAF-based steel production
SteelAsia stated that the proceeds from the green loan will be used as working capital for its electric arc furnace (EAF) -based production facilities. The company noted that its steelmaking operations utilize scrap recycling and renewable energy to produce low-emission steel products.
According to SteelAsia, its Calaca steel mill has been producing green steel since 2008. The facility has reportedly been assessed by Norway-based DNV as one of the world’s lowest-carbon steelmaking plants, with a carbon footprint approximately 90 percent below the global average for conventional steel production routes.
Low-emission model to be replicated at new plants
SteelAsia stated that it plans to apply the same low-emission production model to its upcoming steel facilities. This includes the Philippines’ first medium sections mill in Lemery, Batangas, which is expected to begin operations later this year.
The company stated that the framework is intended to guide future sustainability-linked financing initiatives through clearly defined environmental objectives, governance standards, and transparency requirements.
