According to a recent report, Brazilian aluminium producer Companhia Brasileira de Alumínio (CBA) will continue to seek ‘green funding’ for its low-carbon aluminium initiative. The company this year has already secured 500 million Reais ($90 million) to develop sustainability projects and offer more low-carbon metal, said company executives on October 5.
However, the company is cautious about the domestic demand that has seen a hit by the COVID-19 pandemic. Even though the market has recovered at present yet the probability of downfall in the near future after restocking action this year cannot be disregarded. Also, the possibility of a second wave of COVID-19 infection has not been ruled out.
Earlier, the fundraising was done through two different contracts with Brazilian banks Bradesco and Santander, with 8 and 4 years maturities, respectively. Having a sustainability counterpart with a third-party consultant assurance did not result in more advantageous capital costs, but the company is determined to use the same method for its low-carbon initiatives.
CBA is the first Brazilian company to offer certified sustainable aluminium. The company has a total annual production of around 480,000 tonnes, from mining bauxite through to producing aluminium ingots, sheets, and coil.
CBA’s key executive had once pointed out that low-carbon aluminium may not have awarded producers yet with higher premiums, but it has started making a difference when consumers pick their suppliers.
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