UltraTech Cement has raised $500 million through a Sustainability Linked Loan (SLL) in partnership with six banks. This is the company’s second fund, after the first issue related to sustainability in 2021. The framework follows the Capital Markets Principles from the International Capital Markets Association (ICMA) and Sustainable Lending Principles from the Loan Markets Association (LMA), Credit Unions and Trade Associations (LSTA) and the Asia-Pacific Loan Markets Association. (Apollom).
SandP Global Ratings provided a second opinion on the framework. WaM’s Sustainable Performance Targets (SPTs) include a 27% reduction in emissions in the range of 1 per ton of cementitious materials (kgCO2/t.cem) by March 2032, based on the FY17 index, and increased yields. the share of green energy from waste heat recovery, solar and wind will reach 85% in 30 years and 100% in 50 years. Sumitomo Mitsui Banking Corporation (SMBC) is the sole coordinator and lead advisor for the transaction. The lenders include SMBC, State Bank of India (SBI), BNP Paribas, DBS, MUFG and Mizuho. UltraTech Cement, part of the Aditya Birla Group, is the third largest cement producer in the world, excluding China, with a consolidated gray cement capacity of 154.86 million tonnes per annum. The company reported a consolidated net profit of Rs 1,696.59 crore for Q1FY25, a slight increase from Rs 1,688.45 crore in Q1FY24. Operating income rose 1.87% year-on-year to Rs 18,069.56 crore for the quarter ended June 30, 2024.