Banco Santander’s subsidiary in Chile and Aceros AZA, the country’s leading manufacturer of steel from scrap recycling, have signed a committed credit line structured in ESG (environmental, social and governance) format, which reaches $ 16,000 million and will be used for general corporate uses.
As explained by Banco Santander, the product is structured in such a way that the interest rate of the financing is linked to the reduction of its CO2 emissions for each ton of crude steel produced. This indicator is of strategic relevance for Aceros AZA due to its commitment to reduce its emissions of this type by 50% by 2030, with the aim of being carbon neutral by 2050.
VE acted as Sustainability Agency, evaluating the relevance and ambition of the indicator proposed by the company.
Aceros AZA is a company dedicated to the manufacture of products of this metal from recycled ferrous scrap and has an installed production capacity of 520,000 tons of steel per year.
Since 2019, Santander Chile has been one of the main drivers of sustainable financing in Chile. In this regard, Jaime Arriagada, managing director of Global Debt Financing at Santander CIB, assured that “more and more clients have chosen to link their financing to ESG variables. Our goal is to support companies that have sustainability in their DNA, such as Aceros AZA, contributing to a circular economy and seeking cleaner forms of production ”.
It should be remembered that Grupo Santander has a series of commitments in place that reflect its commitment to contribute to the United Nations Sustainable Development Goals and thus guarantee that it carries out its activity in a responsible manner. Among these, supporting clients in the transition to a green economy, mobilizing € 120 billion from 2019 to 2025 and € 220 billion between 2019 and 2030 in green finance to help address climate change.