UltraTech Cement Secures $500 Million Sustainability-Linked Loan
- Aditya Birla Group’s UltraTech Cement has secured a $500 million sustainability-linked loan.
- The loan is aligned with UltraTech’s Sustainability-Linked Financing Framework, which outlines specific sustainability performance targets.
Aditya Birla Group’s flagship cement company, UltraTech Cement, has successfully raised $500 million through a sustainability-linked loan (SLL). This marks the second sustainability-linked financing for UltraTech, reinforcing its commitment to environmental, social, and governance (ESG) principles.
The financing follows UltraTech’s inaugural $400 million sustainability-linked bond issuance in 2021. The SLL, secured with the participation of six banks, is aligned with UltraTech’s recently published Sustainability-Linked Financing Framework. This framework, developed in accordance with the Sustainability-Linked Bond Principles established by the International Capital Market Association (ICMA), outlines specific sustainability performance targets for the company.
Key sustainability goals include:
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- Reducing Scope 1 emissions by 27% per ton of cementitious material by March 2032 compared to the fiscal year 2017 baseline.
- Increasing the share of green energy from waste heat recovery systems, solar, and wind power to 85% by fiscal year 2030 and 100% by fiscal year 2050.
Sumitomo Mitsui Banking Corporation (SMBC) served as the sole sustainability coordinator and advisor for this transaction, while the lending consortium included SMBC, State Bank of India, BNP Paribas, DBS, MUFG, and Mizuho.
“This financing underscores UltraTech’s ongoing commitment to aligning its funding strategy with its sustainability and ESG goals,” stated the company in a filing to the Bombay Stock Exchange.
UltraTech Cement, a global leader in the cement industry, continues to demonstrate its dedication to sustainable practices and contributes to a greener future.
Edited by Harshajit Sarmah
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