CashNews.co
The transaction marks the second sustainability-linked financing raised by UltraTech, subsequent to its inaugural sustainability-linked bond issuance in 2021. “This financing signifies UltraTech’s ongoing commitment to align its funding strategy with its sustainability and ESG goals,” said the company in the statement.
SMBC, SBI, BNP Paribas, DBS, MUFG and Mizuho are the six banks who helped the cement major in completeting the transaction. Among all, 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.
Recently, Aditya Birla Group-owned UltraTech Cement approved the purchase of 32.72 per cent equity stake of the promoters and their associates in India Cements. This would make UltraTech Cement the majority shareholder in the south based cement manufacturer with a holding of 55% of the total shares.
UltraTech Cement on Friday reported a consolidated net profit of Rs 1,697 crore for the quarter ended June 30, 2024 (attributable to shareholders), a marginal increase of 0.50% from Rs 1,688 crore reported by the Aditya Birla Group company in the year-ago period.
The cement major is the third largest cement company in the world, excluding China, with a consolidated production capacity of 154.86 Million Tonnes Per Annum (MTPA) of grey cement. UltraTech is the only cement company globally (outside of China) to have 100+ MTPA of cement manufacturing capacity in a single country.