Slovenia will decarbonise the steel industry
To facilitate the transition to a low-carbon economy, the European Bank for Reconstruction and Development (EBRD) is contributing € 230 million to the long-term debt of the Slovenska jeklarska družba Group (SIJ Group), with € 25 million to support the specialized steel company’s efforts to further reduce its environmental impact. the bank announced on 14 February.
The SIJ Group already has one of the lowest carbon footprints in the world’s steel industry, manufactures its products from 100% recycled steel scrap and is in line with the EU taxonomy.
The EBRD said that the bank is constantly cooperating with SIJ to monitor its participation in the first issue of the company’s local capital market in 2015 and over EUR 40 million participation in the debt system in 2017, which contributes to SIJ’s energy efficiency, investment and refinancing.
Proceeds from the EBRD will finance capital investments to improve energy efficiency at SIJ’s Jesenice and Ravne na Koroškem production sites, contributing to the company’s decarbonisation efforts and meeting the criteria for “significant contribution” to climate change mitigation in the EU taxonomy. Last but not least, the EBRD’s cooperation will help the SIJ improve its climate-related financial disclosures.
“We are pleased to expand our collaboration with SIJ, one of the world’s most efficient steel producers, and fund their ongoing efforts to further reduce the environmental footprint of their operations and improve their climate-related disclosures,” said the EBRD Global Head of Manufacturing and Services. Frederic Lucenet he said.
Igor Malevanov, CFO of the SIJ Group, thanked the EBRD for remaining faithful to its mission of reconstruction and development. “In addition to its direct contribution to financing our climate-related energy efficiency investments, the EBRD’s involvement in our new debt offering has encouraged other lenders to increase their liabilities. In the end, this enables the SIJ Group to achieve long-term development goals. We also appreciate the EBRD’s support in improving our ESG-related reporting, “Lucenet said.
The SIJ Group is the largest vertically integrated steel producer in Slovenia and the leading Slovenian exporter with a strong presence on international markets in 68 countries in Europe, North America, South America, Asia, Africa and the Middle East.
To date, the EBRD has invested almost 1.3 billion euros in 98 projects in Slovenia.