UltraTech Raises $500 Million To meet Sustainability And ESG Goals – EQ
In Short : UltraTech Cement has successfully raised $500 million through sustainability-linked bonds to advance its Environmental, Social, and Governance (ESG) goals. The funds will be utilized to support initiatives aimed at reducing the company’s carbon footprint, enhancing energy efficiency, and promoting sustainable practices within its operations. This move underscores UltraTech’s commitment to achieving its sustainability targets and contributing to global climate change mitigation efforts.
In Detail : This is the second sustainability-linked financing raised by UltraTech, after it raised about USD 400 million in 2021 through sustainability-linked bond issuance.
Leading cement maker UltraTech on Monday said it has raised USD 500 million (Rs 4,193.8 crore) through a sustainability-linked loan, in which six banks participated.
This is the second sustainability-linked financing raised by UltraTech, after it raised about USD 400 million in 2021 through sustainability-linked bond issuance.
Through this funding, UltraTech Cement, which aims to be carbon-neutral concrete by 2050, will fund to meet the sustainability and ESG goals of the Aditya Birla Group firm.
“This financing signifies UltraTech’s ongoing commitment to align its funding strategy with its sustainability and ESG goals,” said the Aditya Birla group firm in a regulatory filing.
UltraTech’s Sustainability Performance Targets (SPTs) are guided towards a reduction in emissions and an increase in the share of green energy from waste heat recovery system (WHRS), solar and wind power in its total energy mix to 85 per cent by FY30 and 100 per cent in FY50.
Lenders for the transaction include SMBC, SBI, BNP Paribas, DBS, MUFG, and Mizuho.
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.
UltraTech Cement is a signatory to the GCCA Climate Ambition 2050 and has committed to the Net-Zero Concrete Roadmap announced by GCCA.
In March this year, UltraTech announced acquiring of 26 per cent equity of O2 Renewable Energy, a company engaged in the generation and transmission of renewable energy. This was to meet green energy needs and optimise energy costs.
UltraTech Cement, a USD 8.4 billion (Rs 69,810 crore) company is increasing its cement production capacity through acquisitions and expansion projects.
In April this year, the company crossed 150 MTPA production capacity and has become the third largest cement producer in the world, outside of China.
“With the completion of the ongoing expansion projects across India by FY27, and receipt of statutory approvals for the recently announced acquisitions of Kesoram Cement (10.75 MTPA) and The India Cements (14.45 MTPA), our total cement capacity will surpass the 200 MTPA target that was announced at last year’s AGM,” said its Chairman Kumar Mangalam Birla earlier this month in the AGM of the company.
