UltraTech, India’s leading cement maker UltraTech, announced on Monday that it had raised $500 million (₹4,193.8 crore) through a sustainability-linked loan with participation from six banks.
According to the company’s press release, this transaction marks its second sustainability-linked financing, following its inaugural bond issuance of $400 million in 2021.
Through this funding, UltraTech Cement, which aims to be carbon-neutral by 2050, will meet the sustainability and ESG goals of the Aditya Birla Group firm.
“This financing signifies UltraTech’s ongoing commitment to align its funding strategy with its sustainability and ESG goals,” said the Aditya Birla group firm in the press release.
The funding is aligned with the company’s sustainability performance targets, which include the reduction of scope 1 emissions by 27 percent by March 31, 2032, from an FY17 baseline.
The company also aims to increase the share of green energy from waste heat recovery systems, solar, and wind power in its total energy mix to 85 percent by FY30 and 100 percent in FY50.
Sumitomo Mitsui Banking Corp. acted as the sole sustainability coordinator for this transaction and served as the sole advisor on UltraTech’s sustainability-linked financing framework.
The release further revealed that the lenders for the transaction include SMBC, SBI, BNP Paribas, DBS, MUFG and Mizuho.
UltraTech is India’s largest grey cement and ready-mix concrete manufacturer and the third-largest cement producer globally, excluding China.
As of March 31, 2024, the company’s consolidated grey cement capacity is 147.3 million tonnes per unit, built over an extensive infrastructure of 24 integrated manufacturing units, 33 grinding units and one clinkerization unit. It also holds 307 RMC units, eight bulk packaging terminals and five jetties.
It is also one of India’s largest white cement manufacturers, with a capacity of 1.98 MTPA.
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