Sustainability-linked financing: Gränges reaffirms 'Green Commitment'

Gränges, a global leader in aluminium rolling and recycling in selected niches, has successfully refinanced a sustainability-linked credit facility to bolster its sustainability initiatives.

Arranged by Danske Bank, Nordea, SEB, and Citibank, the agreement comprises a SEK 3,000 million revolving credit facility, which can be expanded to SEK 3,500 million, and a USD$ 70 million loan. The facility is set for an initial term of three years, with an option for a two-year extension.

The financing is tied to achieving two key sustainability performance indicators (KPIs) aligned with Gränges' climate objectives. These KPIs are integral to the company's sustainability-linked financing framework and form the core of Gränges' ambitious sustainability plan.

Oskar Hellström, CFO at Gränges, said, "At Gränges, we are committed to integrating our sustainability plan into all parts of our business, including the Group's financing. We value our good cooperation with our bank partners, who play an important role in supporting Gränges' sustainable development."

As part of the refinancing process, the credit facility established in 2022 has been fully repaid. The new agreement is anticipated to lower financing costs while enhancing the company's sustainability profile. Danske Bank served as the sustainability coordinator for this agreement.

As part of an interview in AL Circle's e-Magazine, "Aluminium Industry: Focus Europe", AL Circle asked Michael Zint, Chief Executive Officer (CEO) of apt Group, "With the European Green Deal and global sustainability goals in focus, how is apt Group aligning its manufacturing processes with net-zero emissions targets?" 

Michael Zint stated, "apt Group is aligning its operations with net-zero emissions targets, in line with the European Green Deal and global sustainability efforts. We have a substantiated roadmap in place to achieve net-zero emissions by 2044. This roadmap outlines clear milestones, including the progressive reduction of carbon emissions across our entire supply chain, increased energy efficiency, and integration of renewable energy sources into our manufacturing processes."

"To support this goal, we are implementing cutting-edge green technologies, optimising resource use, and increasing the proportion of recycled aluminium in our products. We aim to minimise waste, reduce emissions, and create long-term environmental benefits by focusing on circular economy principles. Our net-zero commitment for 2044 reflects our dedication to leading the aluminium industry toward a more sustainable future."
 

Image credit: Granges-annual-and-sustainability-report-2023

Information credit: Granges PR