UltraTech Cement Secures $500 Million Through Sustainability-Linked Financing

Commitment to Sustainability and ESG Goals Strengthened: This transaction not only strengthens UltraTech’s financial foundation but also positions the company as a leader in integrating sustainability into corporate strategy, setting a benchmark for the industry.

NEW DELHI (India CSR): UltraTech Cement Limited, a leader in the cement industry, has successfully raised $500 million through a sustainability-linked loan, reaffirming its dedication to environmental, social, and governance (ESG) goals. This financing, which saw the participation of six major banks, marks UltraTech’s second foray into sustainability-linked financing, following its inaugural sustainability-linked bond issuance in 2021.

Second Sustainability-Linked Financing

UltraTech’s latest $500 million sustainability-linked loan underscores the company’s continuous efforts to align its funding strategies with its long-term sustainability objectives. The loan is part of UltraTech’s broader commitment to integrating sustainability into every aspect of its business, reflecting a strategic approach to sustainable growth and responsible corporate practices.

Alignment with Global Standards

This financing aligns with UltraTech’s recently published Sustainability-Linked Financing Framework. The framework is in accordance with the Sustainability-Linked Bond Principles by the International Capital Market Association (ICMA) and the Sustainability-Linked Loan Principles by the Loan Market Association (LMA), Loan Syndications and Trading Association (LSTA), and Asia Pacific Loan Market Association (APLMA). The framework has also been validated by a Second Party Opinion from S&P Global Ratings, ensuring its credibility and adherence to global standards.

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Key Sustainability Performance Targets

Central to UltraTech’s sustainability strategy are the Sustainability Performance Targets (SPTs) outlined in its Framework. These targets include:

• Reduction in Scope 1 Emissions: UltraTech aims to reduce scope 1 emissions by 27% by March 31, 2032, from a FY17 baseline. This target is measured in kilograms of CO2 per ton of cementitious material (kgCO2/t.cem).
• Increase in Green Energy Share: UltraTech plans to increase the share of green energy from waste heat recovery systems (WHRS), solar, and wind power in its total energy mix to 85% by FY30 and aims for 100% by FY50.

Strategic Partnerships with Global Lenders

The transaction saw participation from a consortium of global lenders, showcasing strong international confidence in UltraTech’s sustainability initiatives. Sumitomo Mitsui Banking Corporation (SMBC) acted as the sole Sustainability Coordinator for this transaction and served as the sole advisor on UltraTech’s Sustainability-Linked Financing Framework. Other lenders included SBI, BNP Paribas, DBS, MUFG, and Mizuho.

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(India CSR)