In Short:
UltraTech Cement, part of the Aditya Birla Group, has secured $500 million (around ₹4,000 crore) through a sustainability-linked loan with help from six banks. This follows their first sustainability-linked bond in 2021. The financing aligns with their Sustainability-Linked Financing Framework. UltraTech is the world’s third-largest cement producer and is committed to achieving net-zero emissions in concrete.
UltraTech Cement’s Bold Move in Sustainable Financing
In an exciting development for the world of sustainable finance, UltraTech Cement, a proud member of the Aditya Birla Group, has successfully raised a remarkable $500 million (approximately ₹4,000 crore) through a sustainability-linked loan, with the support of six prominent banks.
Second Step Towards Sustainability
This latest transaction marks a significant milestone as it’s the second time UltraTech has tapped into sustainability-linked financing, following their first venture into this arena with a bond issuance back in 2021.
Guidance from Leading Financial Institutions
The lead role in this endeavor was taken by Sumitomo Mitsui Banking Corporation, which acted as the sole Sustainability Coordinator for the transaction. They also served as the key advisor on UltraTech’s Sustainability-Linked Financing Framework. Other participating lenders include notable names like SMBC, SBI, BNP Paribas, DBS, MUFG, and Mizuho.
Aligning with Global Sustainability Goals
This financing aligns perfectly with the newly published Sustainability-Linked Financing Framework by UltraTech, which lays out the roadmap for future sustainability-linked bond and loan issuances.
A Leader in Cement Production
As a testament to its industry standing, UltraTech proudly claims the title of the third-largest cement producer in the world, excluding China. With an impressive grey cement capacity of 154.86 mtpa, the company is also committed to the ambitious ‘net zero concrete roadmap’ introduced by the Global Cement and Concrete Association.
