SMBC to give Rs 400 crore green loan to 3 Indian subsidiaries of Denso Corporation

  • India Infoline News Service |
  • 10 Nov, 2022 |
  • 8:27 AM

According to information provided by Sumitomo Mitsui Banking Corporation to The Economic Times, Japanese car component giant Denso's three Indian subsidiaries will get a Rs 400 crore green loan.

Three Indian subsidiaries of the Denso Corporation have entered into an arrangement with SMBC for a green loan, also known as a sustainability-related loan, to cover their working capital needs.

The financing is intended to act as a motivator for Denso to meet its own sustainability goals.

The auto parts manufacturer, which has had a presence in India since the 1980s, has set a goal to achieve net zero carbon emissions at the three Indian subsidiaries' plants by 2025. This will be accomplished by running the industries on renewable energy while simultaneously lowering the overall energy expense.

The automaker's progress toward reaching those sustainability goals will be tracked by SMBC. If the goals are met in accordance with the agreed-upon benchmarks, the cost of the loan may decrease and a reduced interest rate may be applied.

Additionally, this partnership will assist SMBC in achieving its objective of delivering more sustainability-related loans to businesses.

Three of Denso's subsidiaries—Denso Haryana Pvt Ltd, Denso India Pvt Ltd, and Denso Kirloskar Industries Pvt Ltd—manufacture parts and accessories for automobiles, including electrical automotive parts, alternators, starters, and powertrain products (such as fuel pumps, injectors, and so forth). They also produce small motors, automobile radiators, and air conditioners for cars and buses.

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