Latest news with #sustainablefinancing
Russia Today
08-07-2025
- Business
- Russia Today
G20 chair calls for urgent global action on Africa's debt crisis
South African President Cyril Ramaphosa has called for urgent and collective global action to address the growing debt burden that is crippling many developing countries, especially in Africa. In his weekly letter to the nation, Ramaphosa highlighted the need for sustainable and affordable financing to achieve the United Nations Sustainable Development Goals (SDGs) by 2030. Following the 4th Financing for Development Conference held in Sevilla, Spain, Ramaphosa said the world is facing 'more daunting challenges than at any other time,' including the climate crisis, poverty, and economic instability. He also highlighted the immense funding gap facing the world: 'It is estimated that the world needs an extra $4 trillion a year to meet the UN Sustainable Development Goals by 2030, a gap which can only be closed through more affordable, long-term sustainable financing.' He drew attention to the growing challenge posed by debt repayments, noting that: 'Around 3.4 billion people now live in countries that are spending more on interest payments to creditors than on health and education.' Quoting the Jubilee Commission appointed by the late Pope Francis, Ramaphosa said: 'While few countries have defaulted on their debt, they are defaulting on their people, their environment, and their future.' He stressed that debt, when used wisely, can be a tool for development, but external shocks, such as the COVID-19 pandemic and global conflicts, have made it increasingly expensive. "Debt can be a tool for development if it is affordable and spent efficiently on infrastructure and other investments that support growth. However, a succession of external shocks – including the COVID-19 pandemic, the destabilizing effect of various conflicts around the world, and tightening financing conditions – has caused the cost of debt to rise rapidly for many developing economies," said Ramaphosa. To address this, South Africa has taken concrete steps under its G20 Presidency, including the formation of an Africa Expert Panel led by former Finance Minister Trevor Manuel. The panel is tasked with developing actionable recommendations for debt sustainability. 'We have since been focusing on practical solutions to achieve debt sustainability, such as improving the G20 Common Framework for debt treatments to enable timely and adequate debt restructuring,' Ramaphosa said. He also highlighted the importance of innovative financial mechanisms, including climate-resilient debt clauses that can automatically pause payments in times of environmental disaster. Ramaphosa said the focus must be on ensuring timely intervention and adequate relief for countries facing liquidity challenges. 'There is no shortage of solutions to address the debt burden. What we need is the political will to translate proposals into action and to do so at a scale that matches the size of the challenge.' The commitments made in Sevilla, to enhance fiscal space, address debt challenges, and lower capital costs, were echoed in the recent Rio de Janeiro Declaration adopted at the BRICS Leaders' Summit, he said. It called for a comprehensive and systematic approach to managing the debt vulnerabilities of both low and middle-income countries. 'The world cannot stand by and watch as rising debt service costs crowd out development for a generation or more,' Ramaphosa warned. South Africa, he said, remains steadfast in its commitment to work with the international community to achieve a just, effective, and sustainable solution to the global debt published by IOL
Al Bawaba
07-07-2025
- Business
- Al Bawaba
Mashreq announces AED 126 million Sustainable financing facility for one of the UAE's leading sustainable steel producers, Arabian Gulf Steel Industries
Mashreq, a leading financial institution in the MENA region, has announced the provision of an AED 126 million sustainable financing facility to Arabian Gulf Steel Industries (AGSI), the UAE's largest private sector steel maker and recycler and a recognised leader in low emission steel production. The transaction will further support AGSI's sustainability agenda and enable the company's transition toward cleaner industrial practices in line with UAE Vision one of the UAE's first steel producers to secure a green facility tied to emissions goals, AGSI is setting a precedent for how industrial players can integrate environmental performance into their financing strategy. AGSI's carbon neutrality was verified by DNV, leading global assurance and certification firm, confirming emissions of 0.13 tonnes of CO₂ per tonne of crude steel. Looking ahead, the company plans to produce 5 million tonnes of green steel by 2030 and aims to cut emissions by 95 percent compared to traditional steelmaking. The facility will fund environmentally friendly projects focused on improving production efficiency to help AGSI meet these targets. It will also accelerate the adoption of green technologies, with cost savings expected over time through better energy use and reduced operating Van Dusen, Head of the Mashreq Corporate and Investment Banking Group, said: "AGSI is setting a benchmark for low-emission steel production, and we are pleased to provide a financing solution that enables them to scale their efforts. Responsible finance is a business imperative for Mashreq, and we are focused on delivering structures that help our clients lead that transition with confidence."Steel industry is currently responsible for 7% of total global CO₂ emissions. This facility represents a significant step forward for green finance in the Middle East, applying sustainable funding to a sector that is traditionally difficult to AlShimmari, Head of ESG at Mashreq, said: 'This transaction reflects a broader shift taking place across the region's industrial sector, where more companies are using finance as a strategic tool to meet their sustainability goals. Steelmaking remains one of the most resource-intensive industries globally, and AGSI is among the first in the UAE to secure a green facility that directly supports its decarbonisation efforts. This deal also reinforces Mashreq's leading role in driving sustainable industrial growth in the UAE and the region by aligning finance with tangible environmental outcomes."AGSI is the UAE's largest private sector steel maker and recycler. Its operations are fully based on local recycled raw materials and powered mostly by renewable energy. The company has achieved net zero carbon emissions per tonne of steel and remains committed to carbon neutrality through 2035 and beyond. By 2030, AGSI aims to produce 5 million tons of low-carbon steel while maintaining a 90 percent reduction in emissions compared to traditional steelmaking. The company has already eliminated more than 7.28 million tons of carbon dioxide emissions through its current production Hussain, founder and CEO at AGSI said: 'Securing this facility reflects both the strength of our business model and the growing confidence in industrial sustainability as a viable path forward. Our partnership with Mashreq marks an important step forward in our growth journey and our shared commitment to a low-carbon future. It gives us the momentum to keep moving forward, scaling responsibly, and continuing to deliver real value to the UAE's green economy.' This transaction is the latest addition to Mashreq's pledge to facilitate USD 30 billion in sustainable finance by 2030. The bank has played a leading role in several high-impact ESG transactions across the region. The facility is also part of Mashreq's Climb2Change initiative, a global platform that unifies the bank's efforts in sustainable finance, responsible banking, and social impact.
Zawya
07-07-2025
- Business
- Zawya
Mashreq announces AED 126mln sustainable financing facility for one of the UAE's leading sustainable steel producers, Arabian Gulf Steel Industries
Dubai, UAE: Mashreq, a leading financial institution in the MENA region, has announced the provision of an AED 126 million sustainable financing facility to Arabian Gulf Steel Industries (AGSI), the UAE's largest private sector steel maker and recycler and a recognised leader in low emission steel production. The transaction will further support AGSI's sustainability agenda and enable the company's transition toward cleaner industrial practices in line with UAE Vision 2030. As one of the UAE's first steel producers to secure a green facility tied to emissions goals, AGSI is setting a precedent for how industrial players can integrate environmental performance into their financing strategy. AGSI's carbon neutrality was verified by DNV, leading global assurance and certification firm, confirming emissions of 0.13 tonnes of CO₂ per tonne of crude steel. Looking ahead, the company plans to produce 5 million tonnes of green steel by 2030 and aims to cut emissions by 95 percent compared to traditional steelmaking. The facility will fund environmentally friendly projects focused on improving production efficiency to help AGSI meet these targets. It will also accelerate the adoption of green technologies, with cost savings expected over time through better energy use and reduced operating expenses. Joel Van Dusen, Head of the Mashreq Corporate and Investment Banking Group, said: "AGSI is setting a benchmark for low-emission steel production, and we are pleased to provide a financing solution that enables them to scale their efforts. Responsible finance is a business imperative for Mashreq, and we are focused on delivering structures that help our clients lead that transition with confidence." Steel industry is currently responsible for 7% of total global CO₂ emissions. This facility represents a significant step forward for green finance in the Middle East, applying sustainable funding to a sector that is traditionally difficult to decarbonise. Faisal AlShimmari, Head of ESG at Mashreq, said: 'This transaction reflects a broader shift taking place across the region's industrial sector, where more companies are using finance as a strategic tool to meet their sustainability goals. Steelmaking remains one of the most resource-intensive industries globally, and AGSI is among the first in the UAE to secure a green facility that directly supports its decarbonisation efforts. This deal also reinforces Mashreq's leading role in driving sustainable industrial growth in the UAE and the region by aligning finance with tangible environmental outcomes." AGSI is the UAE's largest private sector steel maker and recycler. Its operations are fully based on local recycled raw materials and powered mostly by renewable energy. The company has achieved net zero carbon emissions per tonne of steel and remains committed to carbon neutrality through 2035 and beyond. By 2030, AGSI aims to produce 5 6.6 million tons of low-carbon green steel while maintaining a 90 95 percent reduction in emissions compared to traditional steelmaking. The company has already eliminated more than 7.28 million tons of carbon dioxide emissions through its current production model. Asam Hussain, founder and CEO at AGSI said: 'Securing this facility reflects both the strength of our business model and the growing confidence in industrial sustainability as a viable path forward. Our partnership with Mashreq marks an important step forward in our growth journey and our shared commitment to a low-carbon future. It gives us the momentum to keep moving forward, scaling responsibly, and continuing to deliver real value to the UAE's green economy.' This transaction is the latest addition to Mashreq's pledge to facilitate USD 30 billion in sustainable finance by 2030. The bank has played a leading role in several high-impact ESG transactions across the region. The facility is also part of Mashreq's Climb2Change initiative, a global platform that unifies the bank's efforts in sustainable finance, responsible banking, and social impact. About Mashreq Mashreq is more than half century old bank, yet proudly thinks like a challenger, startup, and innovator. Mashreq pioneered key innovations and developments in banking, starting with entry-level digital-first customers, all the way to powering some of the region's most prominent corporations and wealth accounts. The bank's mandate is to help customers find their way to Rise Every Day, partnering through the highs and lows to help them reach fulfilment, achieve financial goals, and unlock their vision of success. Reassuringly present in major financial centers of the world, Mashreq's home and global HQ remains in the Middle East, offering services whenever and wherever opportunity takes its customers. Find your way to Rise Every Day at For media enquiries, please contact: Rana AlBorno Public Relations, Mashreq media@
Zawya
02-06-2025
- Business
- Zawya
Togo: African Development Fund and the Republic of Togo Sign Partial Credit Guarantee Agreement to support mobilization of EUR 200 million Sustainable Loan
The African Development Bank Group ( and the Government of Togo have signed a partial credit guarantee agreement to support the country's mobilization of a sustainable financing facility of €200 million. Provided by the African Development Fund, the concessional lending arm of the African Development Bank Group, this partial credit guarantee will enable the government of Togo to leverage its country performance-based allocation by four times to raise €200 million from international commercial lenders including Legal&General (L&G) and Deutsche Bank. The African Development Bank is lead arranger. Funds mobilized under the partial credit guarantee will be allocated to green and social projects including climate adaptation, biodiversity preservation, sustainable agriculture, access to clean energy and pollution control. This is in line with Togo's Sustainable Financing Framework as well as the country's 2020–2025 Government Roadmap, which prioritizes inclusive growth and climate-resilient development. "This innovative operation is the result of the strategic guidance provided by His Excellency Faure Essozimna Gnassingbe, President of the Council, aimed at mobilizing innovative and sustainable financing solutions to support Togo's development program. By securing this 20-year sustainable loan, we are sending a strong signal to international investors about the strength of our economic governance, our financial credibility, and our commitment to developing the country in line with the Sustainable Development Goals," added Essowè Georges Barcola, Minister of Economy and Finance of the Republic of Togo. "This transaction marks a significant milestone in Togo's sustainable development journey. By leveraging the Fund's guarantee products, Togo is not only accessing long-term, affordable capital but also enhancing its visibility among international investors. This operation is strengthening confidence in the country's credit profile and lays the groundwork for future market-based financing under increasingly favorable conditions,' said Solomon Quaynor, Bank Group Vice President for Private Sector, Infrastructure and Industrialization. Jake Harper, Senior Investment Manager, Asset Management at L&G said, 'Channeling debt financing for sustainable outcomes will generate momentum towards bridging the $4 trillion annual SDG funding gap. L&G is proud to have partnered with the Fund as its first non-bank beneficiary lender, and the Government of Togo to support the sovereign's crucial growth agenda. We believe these transactions and innovative financing methods are combating the historic risk-return misperception; and demonstrating the compelling investment opportunity for commercial institutional investors to contribute to global sustainable development with investment-grade credit risk.' 'Deutsche Bank is extremely honored to have been selected to work on this landmark inaugural exercise for the Republic of Togo together with our partners at L&G, as well as the African Development Fund, and also Global Sovereign Advisory, Financial Advisors to the country,' said Maryam Khosrowshahi, Deutsche Bank Managing Director, Chair Global Sub-Saharan Africa, Head Sub-Saharan Africa Coverage. 'Leveraging our notable track record of similarly structured financings as well as our close engagement with the AFDB/ADF and the authorities, we have been able to deliver long term funding to the country at efficient terms and in support of critical green and social projects under their Sustainable Finance Framework.' Approval of this sovereign operation comes as the African Development Fund enters the final stages of its 17 th replenishment process. The project aligns with the Fund's intended shift toward directly accessing capital markets. 'This transaction also showcases the innovative use of the ADF guarantee to increase financing volumes available for low-income countries, beyond the traditional performance-based allocations. It marks the first use of the Guarantor-of-Record structure with the ADF sharing a portion of the guarantee exposure with highly rated credit insurance partners,' said Hassatou N'Sele, Bank Group Chief financial Officer and Vice-President. Distributed by APO Group on behalf of African Development Bank Group (AfDB). Media Contact: Olufemi Terry Communications and External Relations media@ About the African Development Bank Group: The African Development Bank Group (AfDB) is Africa's premier development finance institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). On the ground in 34 African countries with an external office in Japan, the AfDB contributes to the economic development and the social progress of its 54 regional member states. For more information:
