JK Tyre ties up with IFC for India's First Tyre Industry Sustainability-Linked Loan

International Finance Corporation (IFC) has sanctioned a $100 million Sustainability-Linked Loan (SLL) to JK Tyre, a leading Indian tyre manufacturer with a global presence. The funding includes $30 miILion to JK Tyre & Industries Limited and up to $70 million for Cavendish Industries Limited (CIL), a subsidiary of JK Tyre. JK Tyre is a flagship company of JK Organisation, a global conglomerate.

The funding will support the expansion of tyre manufacturing capacity, focusing on Passenger Car Radial (PCR) tyres at JK Tyre's Banmore plant in Madhya Pradesh and Truck and Bus Radial (TBR) tyres at CIL's Laksar plant in Uttarakhand. The initiative aims to promote energy-efficient tyre production, strengthen local supply chains, and create jobs.

Dr. Raghupati Singhania, Chairman & Managing Director of JK Tyre & Industries sald "We are delighted to strengthen our relationship with IFC, securing a $100 million SustainabilityLinked Loan (SLL) to fund our growth plans. By aligning financing to sustainability goals, we aim to drive positive environmental and social impact while achieving our growth objectives. This reaffirms our commitment to sustainable development, while embracing a holistic approach to bolster our presence in key product segments."

Riccardo Puliti, IFC's Regional Vice President for Ash and the Pacific, said 'Sustainable manufacturing is key to realizing India's green ambitions. The enduring partnership between IFC and JK Group demonstrates our shared commitment to this vision. Our latest investment will drive climate-smart manufacturing, enhance supply-chain integration, create quality jobs, and propel India towards self-reliance in domestic production. The SLL, a first in India's tyre industry, aims to set a benchmark and catalyze widespread adoption across the manufacturing sector.

Shares of JK Tyre & Industries Limited was last trading in BSE at Rs. 357.90 as compared to the previous close of Rs. 361.55. The total number of shares traded during the day was 22866 in over 1382 trades.

The stock hit an intraday high of Rs. 363.40 and intraday low of 356.15. The net turnover during the day was Rs. 8211745.00.

Source : Equity Bulls

Keywords

JKTyreandIndustries INE573A01042 IFC SustainabilityLinkedLoan