 "Business Loan")
Tata Communications has raised a $250 million sustainability-linked loan (SLL) from ANZ, DBS Bank, and Export Development Canada (EDC) for a period of 5 years to achieve carbon emission reduction targets, which are key for its long-term sustainability performance.
ANZ acted as the lead sustainability coordinator for the loan, while DBS Bank and EDC were the joint sustainability coordinators.
The transaction is the first SLL by Tata Communications under the company’s new SLL framework. Through the framework, the company intends to link its funding with key objectives such as carbon emission reduction targets (non-financial covenants) that are core and material for the company’s long-term sustainability performance.
The interest rate margin of the loan will be adjusted up or down in accordance with the progress that the company will achieve on its carbon emission reduction targets.
Such short-term targets, creating a link between the cost of banking facilities and progress achieved on key environmental milestones, are consistent with the company’s longer-term ambition to be net zero across its global operations by 2035.
