• UltraTech Cement raises $500 million in its second sustainability-linked financing.
• The loan aligns with UltraTech’s commitment to sustainability and ESG goals.
• Six banks, led by SMBC, supported the transaction, reflecting robust market confidence.

UltraTech Cement Limited has successfully secured $500 million through a sustainability-linked loan, underscoring its commitment to sustainability and ESG (Environmental, Social, and Governance) goals. This transaction, completed with the participation of six major banks, marks UltraTech’s second sustainability-linked financing following its inaugural bond issuance in 2021.

Sumitomo Mitsui Banking Corporation (SMBC) played a pivotal role as the sole Sustainability Coordinator and advisor for UltraTech’s Sustainability-Linked Financing Framework. The financing framework, which guides UltraTech’s future bond and loan issuances, adheres to the Sustainability-Linked Bond Principles 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). It has received a Second Party Opinion from S&P Global Ratings, affirming its alignment with global standards.

The Sustainability Performance Targets (SPTs) set by UltraTech reflect the company’s dedication to reducing its environmental footprint and promoting renewable energy. Specifically, UltraTech aims to reduce Scope 1 emissions—measured in kgCO2 per ton of cementitious material—by 27% by March 31, 2032, from a FY17 baseline. Additionally, the company plans to increase the share of green energy in its total energy mix to 85% by FY30 and reach 100% by FY50.

The transaction also coincides with UltraTech’s recent strategic move to acquire a 32.72% equity stake in India Cements, increasing its total ownership to 55%. This acquisition is a significant step in expanding UltraTech’s footprint in the south Indian market.

Supported by a consortium of leading financial institutions—SMBC, State Bank of India (SBI), BNP Paribas, DBS Bank, MUFG Bank, and Mizuho Bank—this financing underscores the confidence in UltraTech’s financial stability and its commitment to sustainability.

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With this latest financing, UltraTech Cement continues to demonstrate its leadership in sustainable business practices, ensuring that its growth is aligned with environmental stewardship and social responsibility.