UltraTech Cement Secures $500M Sustainability-Linked Loan

UltraTech Cement Limited informed the stock exchanges that the company has successfully secured a US$500 million sustainability-linked loan, with the participation of six prominent banks.

The company added that this transaction marks the company’s second sustainability-linked financing, following its initial sustainability-linked bond issuance in 2021. The loan underscores UltraTech’s commitment to integrating sustainability into its funding strategy, aligning with its Environmental, Social, and Governance (ESG) goals.

The financing is structured under UltraTech’s newly published Sustainability-Linked Financing Framework. This framework sets the standard for the company’s future sustainability-linked bond and loan issuances.

It is aligned with internationally recognised principles, including the Sustainability-Linked Bond Principles published by the International Capital Market Association (ICMA) and the Sustainability-Linked Loan Principles by the Loan Market Association (LMA), Loan Syndications and Trading Association (LSTA), and Asia Pacific Loan Market Association (APLMA). Additionally, the framework has received a Second Party Opinion from S&P Global Ratings, affirming its credibility and alignment with global standards.

Key Sustainability Performance Targets (SPTs) outlined in the framework include a 27% reduction in scope 1 emissions, measured in kgCO2 per ton of cementitious material (kgCO2/t.cem), by March 31, 2032, from an FY17 baseline. Moreover, UltraTech aims to increase the share of green energy from waste heat recovery systems (WHRS), wind, and solar power in its total energy mix to 85% by FY30, with a target of reaching 100% by FY50.

Sumitomo Mitsui Banking Corporation (SMBC) played a pivotal role as the sole Sustainability Coordinator and advisor for UltraTech’s Sustainability-Linked Financing Framework. The loan was facilitated by a consortium of lenders, including SMBC, State Bank of India (SBI), BNP Paribas, DBS Bank, MUFG Bank, and Mizuho Bank.

In Q1 FY 2025, the company reported a total income of ₹18,235.30 crore, an increase from ₹17,910.83 crore in Q1 FY 2024. The net profit for the quarter ended June 30, 2024, was ₹1,695.22 crore, compared to ₹1,690.22 crore during the same period in FY 2024.

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