Climate Change

Slovenian steelmaker SIJ to invest in decarbonization with bank loan

Slovenian steelmaker SIJ invest decarbonization bank loan

Photo: SIJ Group

Published

February 15, 2022

Country

Comments

0

Share

Published:

February 15, 2022

Country:

Comments:

0

Share

A consortium of nine banks including the EBRD approved a EUR 230 million loan to SIJ Group’s two largest subsidiaries. The Slovenian steelmaker said it would refinance debt and invest in energy efficiency as part of its decarbonization efforts.

Nova Ljubljanska banka (NLB) leads a group of nine foreign and domestic lenders that signed a seven-year syndicated agreement worth EUR 230 million with the largest steel companies of the SIJ Group – SIJ Acroni and SIJ Metal Ravne. The European Bank for Reconstruction and Development said it is participating with EUR 25 million to support the Slovenian industrial producer’s efforts to further reduce its environmental impact.

SIJ Group revealed it would use the funds to refinance its loan portfolio, provide additional liquidity and invest in its development and in the improvement of its environmental efficiency. In its strategy for the period through 2025, the steelmaker vowed to increase production efficiency and sustainable development, especially in environmental projects, and to operate according to the principles of the circular economy and energy efficiency.

EBRD’s share in loan to be partly used for improvement in ESG reporting

EBRD said its funds would be directed to capital expenditure for energy efficiency improvement at SIJ’s production sites in Jesenice and Ravne na Koroškem, contributing to the company’s decarbonization efforts and meeting the criteria for a substantial contribution towards climate change mitigation under the European Union’s taxonomy.

The international financing institution’s participation will help the steel manufacturer improve its climate-related financial disclosures, the announcement adds.

“We are pleased to extend our collaboration with SIJ, one of the most efficient steel producers globally, and finance their ongoing efforts towards reducing further the environmental footprint of their operations and improving their climate-related disclosures,” EBRD’s Global Head of Manufacturing and Services Frederic Lucenet said.

Chief Financial Officer of the SIJ Group Igor Malevanov expressed gratitude for the bank’s support in the company’s efforts to improve reporting on its environmental, social, and corporate governance or ESG.

Production is based on 100% scrap steel

SIJ Group already has one of the lowest carbon footprints in the steel industry globally, and it manufactures its products from 100% recyclable steel scrap, EBRD said.

The remaining members of the banking group are Nova Kreditna banka Maribor, state-owned export and development bank SID, SKB banka, Erste Group Bank, Banka Sparkasse, Banka Intesa Sanpaolo and UniCredit Banka Slovenia.

NLB noted that it arranged a sale of EUR 13 million in bonds and EUR 30 million in short-term debt for SIJ Group in December.

Comments (0)

Be the first one to comment on this article.

Enter Your Comment
Please wait... Please fill in the required fields. There seems to be an error, please refresh the page and try again. Your comment has been sent.

Related Articles

Two four European Sustainable Energy Awards Southeastern Europe

Two of four European Sustainable Energy Awards go to Southeastern Europe

26 September 2022 - Timea Farkas is the Young Energy Trailblazer at European Sustainable Energy Awards and the Minoan Energy Community won in the Local Energy Action category

City of NiS starts development of Energy Transition Roadmap until 2050 tender

City of Niš in Serbia to develop Energy Transition Roadmap until 2050

26 September 2022 - The local team in charge of the project is seeking an experienced consultant to support the work, the deadline for offers is October 4

EU Commissioner Simson this year EUSEW most important so far

EU Commissioner Simson: This year’s EUSEW is most important one so far

26 September 2022 - The European Sustainable Energy Week – EUSEW started today with top EU officials urging for a faster energy transition

Denmark first to take responsibility for loss and damage from climate change

23 September 2022 - A global mechanism to compensate for loss and damage caused by climate change could come to life after years of unsuccessful negotiations