UltraTech raises $500 million to advance sustainability & ESG Goals

On Monday, India's UltraTech Cement announced that it has secured $500 million through a sustainability-linked loan, with support from six banks.

This fundraising effort represents the Aditya Birla Group-backed cement manufacturer's second sustainability-linked financing, following a $400 million raise in 2021.

Sustainability-linked finance is a financing approach where borrowers achieve environmental, social, and governance goals while securing funds. UltraTech Cement stated that its sustainability objectives involve lowering emissions and boosting the use of green energy.

According to UltraTech, Sumitomo Mitsui Banking Corporation served as the sole sustainability coordinator for the transaction. The participating lenders included SMBC, State Bank of India, BNP Paribas, DBS, MUFG, and Mizuho.

UltraTech's Sustainability Performance Targets (SPTs) are centered on cutting emissions and enhancing the use of green energy. The company plans to source 85% of its energy from waste heat recovery systems (WHRS), solar, and wind power by FY30, with a goal of achieving 100% by FY50. This initiative aligns with the Aditya Birla Group's broader sustainability objectives.

The financial institutions involved in this deal are SMBC, SBI, BNP Paribas, DBS, MUFG and Mizuho. As for UltraTech's Sustainability-Linked Financing Framework, Sumitomo Mitsui Banking Corporation (SMBC) was the only sustainability coordinator and advisor.

UltraTech Cement has shown its commitment to sustainable practices in the cement industry by becoming a signatory to the GCCA Climate Ambition 2050 and pledging to adhere to GCCA's Net-Zero Concrete Roadmap. This dedication demonstrates UltraTech Cement's determination towards environmentally-friendly initiatives

On Monday, UltraTech Cement shares closed at Rs.11,337.25 on the BSE, up 0.11% from the previous day. This rise reflects investor confidence in the company's strategic initiatives and growth potential.