SLLs are loans where the interest rate is linked to the borrower's sustainability performance. This transaction represents second sustainability-linked financing raised by UltraTech, following its inaugural sustainability-linked bond issuance in 2021.
The cement major stated that this financing is aligned with its 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, it added.
The loan's Sustainability Performance Targets (SPTs) reflect UltraTech's core sustainability objectives, according to the Framework. The targets include a 27% reduction in Scope 1 emissions per ton of cementitious material (kgCO2/t.cem) by March 2032 from a FY17 baseline and a goal to increase the share of green energy from waste heat recovery systems, solar, and wind power to 85% by FY30 and 100% by 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.
UltraTech Cement is the cement flagship company of the Aditya Birla Group. It is the third largest cement producer in the world, outside of China, with a consolidated Grey Cement capacity of 154.86 MTPA.
The cement major’s consolidated net profit rose marginally to Rs 1,696.59 crore in Q1 FY25 as against Rs 1,688.45 crore in Q1 FY24. Revenue from operations rose 1.87% year on year (YoY) to Rs 18,069.56 crore in the quarter ended 30 June 2024.
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