Hybar LLC, a newly created company seeking to build a scrap metal recycling steel rebar plant in Osceola, Arkansas, has priced USD 330 million (EUR 300m) of certified Climate Bonds.
This marks the first certification under the Steel Criteria of the Climate Bonds Standard, according to an announcement on Tuesday.
The issuance is part of USD 700 million of debt and equity financing raised by Hybar to build and operate its scrap metal recycling steel rebar mill. Construction of the plant, set to produce 630,000 tonnes of rebar annually, has started and is expected to take 22 months.
The facility will be directly connected to an adjacent solar installation, which will allow the mill to use 100% renewable power during certain periods of the day.
The project advances sustainability by increasing the use of recycled scrap metal and significantly reducing energy use in rebar production.
Commenting on the USD-330-million Climate Bonds issuance, Sean Kidney, chief executive officer and co-founder of Climate Bonds Initiative, said: “This certification sets an important precedent for other companies in the hard-to-abate sector, demonstrating that achievable integration of sustainable practices can lead to a low carbon future.”
Kestrel was the external reviewer for the bonds certification.
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