OCBC’s Mezzanine Capital unit has made a significant equity investment in Green Esteel Pte Ltd, supporting the development of Southeast Asia’s largest integrated low-carbon steel plant. This investment marks the first commercial funding for Esteel by a financial institution in Asia. The plant, set to be commissioned by 2030, will be located in Sabah and is expected to produce 2.5 million tonnes of Hot Briquetted Iron (HBI) annually, a key component in low-carbon steel production.
The $1.5b project aligns with OCBC’s Sustainability Investment Programme, which aims to invest in green and transition assets. The initiative is part of OCBC’s broader strategy to decarbonise the steel sector, a major contributor to global greenhouse gas emissions. Traditional steel production accounts for about 7% of these emissions, making it the highest emitting manufacturing sector, according to the World Economic Forum.
The demand for low-carbon steel is anticipated to rise as the global economy shifts towards sustainable practices. The “Green Steel Industry Report 2025” projects the low-carbon steel market to grow at a compound annual growth rate of 21.4%, reaching $19.4b by 2029.
Gan Kok Kim, Head of Global Investment Banking at OCBC, stated, “With demand for low-carbon steel expected to rise sharply around the world, we are confident that our equity investment in Esteel offers strong potential for long-term growth returns.”
Green Esteel’s CEO, Gong Hong, expressed gratitude for OCBC’s support, highlighting the partnership’s role in advancing sustainable industrial transformation. This investment underscores OCBC’s commitment to fostering a greener, low-carbon economy.
