Tata Comm secures $250M sustainability loan from DBS, ANZ, EDC

Tata Communications said that it has secured a USD 250 million sustainability loan from Export Development Canada (EDC), ANZ, and DBS Bank. According to a release, the loan has a five-year tenure and is known as a sustainability-linked loan (SLL), with charges determined by advancement towards carbon emission targets. It claimed that this was the first transaction of its sort in India and that the interest rate margin of the loan would be adjusted up or down based on how well Tata Communications meets its commitments for reducing carbon emissions. These short-term goals, which establish a connection between the price of bank loans and advancements made towards significant environmental benchmarks, align with the company's longer-term goal of becoming Net Zero throughout its global operations by 2035, according to the statement. Rajat Verma, head of institutional banking group at DBS Bank India, made a suggestion that other businesses might choose to use similar services. He also expressed the lender's excitement about helping businesses implement workable decarbonisation plans so that they can all work together to create a more sustainable future. "We see significant opportunities for other companies to align their financing with their environmental commitments and believe the facility will pave the way for other borrowers in India and across Asia to set robust sustainability performance targets," Stella Saris Chow, the head of sustainable finance at ANZ's head of sustainable finance Stella Saris Chow said. (Source: PTI)