UltraTech raises USD 500 million through sustainability-linked financing

UltraTech Cement Limited ("UltraTech") has today announced that it has successfully raised US$500 million through a sustainability-linked loan with participation from six banks. The transaction marks the second sustainability-linked financing raised by UltraTech, subsequent to its inaugural sustainability-linked bond issuance in 2021. This financing signifies UltraTech's ongoing commitment to align its funding strategy with its sustainability and ESG goals.

This financing is aligned with UltraTech's recently published Sustainability-Linked Financing Framework which covers the Company's future sustainability-linked bond and loan issuances. UltraTech's Framework is aligned with the Sustainability-Linked Bond Principles published by the ICMA, the Sustainability-Linked Loan Principles published by the LMA/LSTA/APLMA and has received a Second Party Opinion from S&P Global Ratings.

The Sustainability Performance Targets (SPTs), detailed in the Framework, reflect UltraTech's core sustainability principles and business objectives. These targets encompass

- Reduction of scope 1 emissions, measured in kgCO2 per ton of cementitious material (kgCO2/t.cem), by 27% by March 31, 2032, from a FY17 baseline.

- Increase share of green energy from waste heat recovery system (WHRS), solar and wind power in its total energy mix to 85% by FY30 and 100% in FY50.

Sumitomo Mitsui Banking Corporation (SMBC) acted as the sole Sustainability Coordinator for this transaction and served as the sole advisor on UltraTech's Sustainability-Linked Financing Framework. Lenders for the transaction include SMBC, SBI, BNP Paribas, DBS, MUFG and Mizuho.

Shares of UltraTech Cement Limited was last trading in BSE at Rs. 11337.25 as compared to the previous close of Rs. 11324.55. The total number of shares traded during the day was 10333 in over 2006 trades.

The stock hit an intraday high of Rs. 11399.95 and intraday low of 11275.00. The net turnover during the day was Rs. 116891159.00.

Source : Equity Bulls

Keywords

UltraTechCement INE481G01011 FundRaising SustainabilityLinkedLoan