SteelAsia Manufacturing Corporation has secured a P1.25-billion green loan from Taiwan-based Cathay United Bank, boosting the Philippine steelmaker’s low-carbon expansion plans and reinforcing regional sustainable finance momentum.
The funds will support its Electric Arc Furnace operations, which combine scrap recycling and renewable energy to produce steel with emissions roughly 90 percent below global averages. Its Calaca facility, operating since 2008, has been rated among the world’s greenest by DNV of Norway.
This is SteelAsia’s first financing under its Moody’s-rated Sustainable Finance Framework, which emphasizes transparency, governance, and measurable sustainability targets. The framework will also underpin replication of its low-carbon model in new facilities, including the country’s first medium sections mill in Lemery, Batangas, set to start operations within the year.
For Cathay United Bank, the loan marks its first overseas green deal with a steelmaker, strengthening its ESG portfolio across Asia.
The bank said the partnership reflects a shared commitment to sustainable industrial development and expanding green finance solutions in emerging markets.
SteelAsia president Rafael Hidalgo said the facility signals strong confidence in the company’s expansion strategy and commitment to low-emission steel production.
Upcoming mills in Batangas, Quezon, and Tarlac are expected to collectively avoid up to 7 million tons of CO2 annually as cleaner technologies scale across its operations.
