UltraTech Cement raises $500 mn through sustainability-linked loans

The company added that the transaction marks the second sustainability-linked financing raised by UltraTech, following its inaugural sustainability-linked bond issuance in 2021

UltraTech Cement on Monday said it has successfully raised $500 million through a sustainability-linked loan with participation from six banks.

The transaction marks the second sustainability-linked financing raised by UltraTech, subsequent to its inaugural sustainability-linked bond issuance in 2021, the company said in a statement.

“This financing signifies UltraTech’s ongoing commitment to align its funding strategy with its sustainability and ESG goals,” it said.

Sumitomo Mitsui Banking Corporation (SMBC) acted as the sole sustainability coordinator for this transaction and served as the sole advisor on UltraTech’s Sustainability-Linked Financing Framework. Lenders for the transaction include SMBC, SBI, BNP Paribas, DBS, MUFG and Mizuho.

The Sustainability Performance Targets (SPTs) include reduction of scope 1 emissions, measured in kgCO2 per tonne of cementitious material (kgCO2/t.cem), by 27 per cent by March 31, 2032, from a FY17 baseline. Further, it involves, increase in the share of green energy from waste heat recovery system (WHRS), solar and wind power in its total energy mix to 85 per cent by FY30 and 100 per cent in FY50.