OCBC invests in low carbon steel project in Malaysia

The project, once completed in 2030, will be among the largest integrated low carbon steel facilities in Southeast Asia.

As part of the investment, a hot briquetted iron (HBI) production plant will be developed. HBI, a critical intermediate material used in high quality steel production, holds vital importance for low carbon steel manufacturing. The new facility will have an annual production capacity of 2.5 million tonnes of HBI, and an equivalent amount of low carbon steel output is anticipated.

This equity investment in Singapore based Green Esteel marks the company’s first commercial financing provided by a financial institution in Asia. The investment, delivered through OCBC’s mezzanine financing division, targets green and transition assets and companies with strong growth potential under the bank’s sustainable investment program.

OCBC Head of Global Investment Banking Gan Kok Kim stated in his remarks on the investment, “Global demand for low-carbon steel is expected to increase rapidly. Our equity investment in Green Esteel offers strong potential for long-term growth,”