India’s UltraTech Cement Raises $500 Million Through Sustainability-Linked Loan

UltraTech Cement Limited announced that it raised $500 million through a sustainability-linked loan that supports the company’s sustainability and environmental, social, and governance (ESG) goals. 

The loan, which involved the participation of six major banks, represents UltraTech’s second sustainability-linked financing, following its first sustainability-linked bond release in 2021. 

The transaction is supported by UltraTech’s recently published framework for Sustainability-Linked Financing, which aligns with the Sustainability-Linked Bond Principles established by the International Capital Market Association (ICMA). 

It also aligns with the Sustainability-Linked Loan Principles set forth by the Loan Market Association (LMA), Loan Syndications and Trading Association (LSTA), and Asia Pacific Loan Market Association (APLMA). 

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UltraTech's ESG strategy heavily relies on the Sustainability Performance Targets.  

The framework and its related Sustainability Performance Targets (SPTs) received a Second-Party Opinion from S&P Global Ratings, that are in alignment with global sustainability standards. 

These targets include a 27% reduction in Scope 1 Emissions by March 31, 2032, using FY17 as a baseline. 

Additionally, the company aims to achieve 85% green energy use by FY30, gradually progressing to 100% by FY50. 

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In this transaction, Sumitomo Mitsui Banking Corporation (SMBC) was pivotal in serving as the sole Sustainability Coordinator and advisor for UltraTech’s Sustainability-Linked Financing Framework.  

The lenders participating in the financing include institutions such as SMBC, State Bank of India (SBI), Banque Nationale de Paris (BNP) Paribas, Development Bank of Singapore (DBS), Mitsubishi UFJ Financial Group (MUFG), and Mizuho.