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Aditya Birla Group promoted UltraTech Cement has secured a $500 million sustainability-linked loan with participation from six banks, as disclosed in a filing to the Bombay Stock Exchange on Monday. This is the second sustainability-linked financing raised by UltraTech. The company secured its inaugural $400 million sustainability-linked bond issuance in 2021.
“This financing underscores UltraTech’s ongoing commitment to aligning its funding strategy with its sustainability and ESG goals,” the company stated in the filing.
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.
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The financing is in line with UltraTech’s recently published sustainability-linked financing framework, which guides the company’s future sustainability-linked bond and loan issuances.
UltraTech’s framework is aligned with the sustainability-linked bond principles established by the International Capital Market Association (ICMA).
The framework outlines specific targets, such as reducing scope 1 emissions, measured in kgCO2 per ton of cementitious material (kgCO2/t.cem), by 27% by March 31, 2032, from a FY17 baseline. Additionally, UltraTech aims to increase the share of green energy from waste heat recovery systems (WHRS), solar, and wind power in its total energy mix to 85% by FY30 and 100% by FY50.