en.Wedoany.com Reported - Scotiabank has provided up to $30 million in green financing to Peruvian steel producer SIDERPERU to support its production operations based on a circular economy and energy efficiency model.

Through this transaction, Scotiabank further focuses on sustainable financial solutions, while SIDERPERU continues to advance innovation in its production processes. This model transforms recycled materials into new raw materials, aiming to reduce dependence on primary resources, marking a significant milestone in the transition of Peru's domestic steel industry toward a circular economy.

This financing will enable SIDERPERU to strengthen steel production using scrap metal as the primary raw material, powered by electric furnaces driven by renewable energy, combining production efficiency with environmental responsibility.

Raúl Ugarte, CFO of SIDERPERU, stated: "This financing is key support for our vision of building an increasingly sustainable steel industry in Peru. It allows us to continue strengthening the circular economy model, which aims to give a second life to over 380,000 tons of scrap metal annually. At SIDERPERU, we have been committed to leading the industry's transformation for 70 years, integrating innovation, energy efficiency, and environmental responsibility to actively contribute to the country's development."

Maricela Panduro, Vice President of Corporate Banking at Scotiabank, noted: "At Scotiabank, we provide financial solutions that create long-term sustainable value. This working capital facility reflects our global commitment to driving sustainable financing solutions for our clients, as well as the banking sector's role as a facilitator of financial products for key national industries."

Beyond its financial impact, the transaction aims to support activities and technologies that help reduce emissions and promote more efficient resource use, aligning with international sustainable financing frameworks and standards. Under this approach, funds will be allocated to eligible activity categories according to established criteria, accompanied by monitoring and reporting mechanisms designed to promote transparency.

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