UltraTech Cement Secures $500M Sustainability-Linked Loan

27 Aug 2024 , 10:50 AM

UltraTech Cement Ltd, part of the Aditya Birla Group, has secured a $500 million sustainability-linked loan, collaborating with six banks to achieve this milestone.

This marks UltraTech’s second venture into sustainability-linked financing, following its initial sustainability-linked bond issuance in 2021.

The loan reflects UltraTech’s commitment to integrating sustainability and ESG (Environmental, Social, and Governance) objectives into its financial strategies.

Currently, UltraTech Cement shares are trading at ₹11,355, reflecting a 0.16% increase from the previous close. Over the past year, the stock has risen by 39% and has gained 8.4% since the start of this year.

The financing aligns with UltraTech’s newly established sustainability-linked financing framework, which will guide future sustainability-linked bonds and loans.

UltraTech’s framework adheres to the sustainability-linked bond principles by the International Capital Market Association (ICMA) and the sustainability-linked loan principles set by the LMA/LSTA/APLMA, receiving validation from S&P Global Ratings.

Sumitomo Mitsui Banking Corporation (SMBC) served as the exclusive sustainability coordinator and advisor for UltraTech’s sustainability-linked financing framework.

The participating banks in this transaction include SMBC, State Bank of India (SBI), BNP Paribas, DBS Bank, MUFG Bank, and Mizuho Bank.

UltraTech Cement Limited, headquartered in Mumbai, is India’s largest producer of grey cement, ready-mix concrete (RMC), and white cement, with a global standing as the fifth-largest manufacturer.

The company has an installed capacity of 152.70 million tonnes per annum, with an annual sales volume of 119 million tonnes.

UltraTech Cement originated in 1983 as the cement division of Larsen & Toubro (L&T), originally branded as “L&T Cement.” In 2000, L&T sold its cement division, forming a wholly-owned subsidiary to manage the cement assets.