Vedanta Aluminium on Tuesday said it has raised USD 250 million (around Rs 2,045 crore) through sustainability-linked loans from international banks to finance its capital expenditure and reduce carbon footprint.
Sustainability-linked loans are debt where a portion of the interest rate is linked the borrower's ability to meet sustainability targets.
The loans were granted on the basis of specific performance parameters for decarbonisation and safety, which the company aims to meet by deploying these funds towards capital expenditure.
This will power the company’s growth which includes the production of value-added aluminium products among others.
The lenders include some of the international banks from the Middle East and the Far East like Mashreq Bank, First Abu Dhabi Bank and CTBC Bank.
Advertisement
"The funds raised via Sustainability Linked Loans will be invested towards growing our business sustainably and responsibly," Rahul Sharma, CEO – aluminium business, Vedanta Ltd said.
Just one email a week