Our friends at Mashreq added another notch to their sustainable financing belt with a AED 126 mn sustainable financing facility to low-emission steel manufacturer Arabian Gulf Steel Industries (AGSI), according to a press release. The move falls under Mashreq’s wider push to mobilize USD 30 bn in sustainable financing by 2030 and marks the bank’s third loan of its kind in less than a month.

Why it matters: “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 decarbonization efforts,” Faisal Alshimmari, head of ESG at Mashreq, said, adding that the transaction reflects a broader shift across the region’s industrial sector, where companies are increasingly using finance as a strategic lever to hit sustainability targets.

Use of proceeds: The Abu Dhabi-based steelmaker will use the capital to further decarbonize its operations and fast-track its rollout of green tech, with the aim of cutting emissions and costs in line with its plans to ramp up green steel production over the next five years. The company plans to produce 5 mn tonnes of green steel by 2030 and aims to cut emissions by 90% compared to traditional steelmaking, the release said, adding that the steel industry currently accounts for 7% of total global carbon emissions.

Background: The leading lender also inked a hybrid sustainability-linked facility with automotive firm Gargash Group earlier last week, estimated to be one of the largest in the automotive sector, after extending a green loan to UAE conglomerate Galadari Brothers late last month to support ESG-driven retrofits across its portfolio. The green loan to Galadari Brothers is also among the largest for an Emirati group.

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