UltraTech Cement, a leading cement manufacturer under the Aditya Birla Group, announced that it has successfully raised $500 million through a sustainability-linked loan. This marks the company's second venture into sustainability-linked financing, following a $400 million raise in 2021.
Sustainability-linked finance allows borrowers to secure funding while committing to achieving specific environmental, social, and governance (ESG) targets. UltraTech Cement's stated goals for this financing include reducing emissions and increasing the use of green energy in its operations.
The transaction was coordinated by Sumitomo Mitsui Banking Corporation (SMBC), which acted as the sole sustainability coordinator. The six banks involved in the loan are SMBC, State Bank of India, BNP Paribas, DBS, MUFG, and Mizuho.
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Despite the successful fundraising, shares of UltraTech Cement closed 0.4 percent lower on the day.
