ANZ acted as the Lead Sustainability Coordinator for the loan, while DBS Bank and EDC were the Joint Sustainability Coordinators, the company said.
Further, the firm added that the transaction is the first SLL for Tata Communications under the company’s new SLL framework. Through the framework, Tata Communications intends to link its funding with key objectives such as carbon emission reduction targets (nonfinancial covenants) that are core and material for the company’s long-term sustainability performance.
“The interest rate margin of the loan will be adjusted up or down in accordance with the progress that Tata Communications will achieve on its carbon emission reduction targets. Such short-term targets, creating a link between the cost of banking facilities and progress achieved on key environmental milestones, are consistent with the company’s longer-term ambition to be Net Zero across its global operations by 2035,” the company stated in the press release.
Kabir Ahmed Shakir, CFO, Tata Communications said, “We intend to drive positive change not just within our own operations but also play a leading role in sustainable finance. We are confident that this innovative financing model will pave the way for a more resilient, more responsible future for businesses of all sizes and locations.”
Tata Communications is a global digital ecosystem enabler powering today's fast-growing digital economy in more than 190 countries and territories. Leading with trust, it enables digital transformation of enterprises globally with collaboration and connected solutions, core and next gen connectivity, cloud hosting and security solutions and media services.
The company’s net profit fell 1.49% to Rs 321.18 crore in Q4 FY24 as compared with Rs 326.03 crore in Q4 FY23. Revenue from operations jumped 24.6% to Rs 5,691.70 crore in Q4 FY24 as compared with Rs 4,568.26 crore posted in corresponding quarter last year.