Brazil's CBA to seek 'green funding' for low-carbon aluminium

October 08, 2020 / www.metalbulletin.com / Article Link

Brazilian aluminium producer Companhia Brasileira de Alum?-nio (CBA) will continue to seek "green funding" alternatives after securing 500 million Reais ($90 million) this year to develop sustainability projects and offer more low-carbon metal, company executives said on Monday October 5.

At the same time, the company was cautious about the recent demand recovery in the domestic market from lows seen due to the Covid-19 pandemic. Growth could slow down after restocking action this year, and the possibility of a second wave of Covid-19 infection has not been ruled out.
The fundraising was done through two different contracts with Brazilian banks Bradesco and Santander, with 8-year and 4-year maturities respectively. Having a sustainability counterpart with a third-party consultant assurance did not result in more advantageous capital costs, but the company will continue to use this method for its low-carbon initiatives.

"On a short-term basis, there are lots of intentions [for more environmental sustainability] being announced in the market, but there has still been no substantial effect seen in the...

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