UltraTech Cement Raises $500 Million in Sustainability-Linked Financing, Enhances Green Targets

UltraTech Cement has successfully raised $500 million through a sustainability-linked loan, marking a significant milestone in the company’s ongoing commitment to environmental, social, and governance (ESG) goals. This financing, backed by a consortium of six major banks, is UltraTech’s second sustainability-linked initiative, following its debut bond issuance in 2021.

Sumitomo Mitsui Banking Corporation (SMBC) served as the sole Sustainability Coordinator and advisor for this transaction, guiding UltraTech’s Sustainability-Linked Financing Framework. The framework, which will govern the company’s future bond and loan issuances, adheres to global standards, including the Sustainability-Linked Bond Principles set by the International Capital Market Association (ICMA) and the Sustainability-Linked Loan Principles from the Loan Market Association (LMA), Loan Syndications and Trading Association (LSTA), and Asia Pacific Loan Market Association (APLMA). S&P Global Ratings has provided a Second Party Opinion, confirming the framework’s alignment with these principles.

UltraTech’s Sustainability Performance Targets (SPTs) are central to this loan, reflecting the company’s focus on reducing its environmental impact and advancing renewable energy use. The company has set a goal to decrease Scope 1 emissions by 27% by March 31, 2032, using a fiscal year 2017 baseline, and to boost the proportion of green energy in its overall energy mix to 85% by fiscal year 2030, with an ultimate target of 100% by 2050.

This loan coincides with UltraTech’s recent strategic acquisition of a 32.72% equity stake in India Cements, raising its total ownership to 55%. This move is poised to strengthen UltraTech’s presence in the southern Indian market, aligning with its broader growth strategy.

The financing, supported by SMBC, State Bank of India (SBI), BNP Paribas, DBS Bank, MUFG Bank, and Mizuho Bank, highlights the market’s confidence in UltraTech’s financial health and its robust sustainability agenda.

With this latest loan, UltraTech Cement reaffirms its leadership in sustainable business practices, ensuring that its expansion is in harmony with its environmental and social responsibilities.