LOADING

Type to search

Vedanta Aluminium Raises $250 Million in Sustainability Linked Loans

Vedanta Aluminium Raises $250 Million in Sustainability Linked Loans

Vedanta Aluminium, India’s largest producer of aluminium, has raised USD 250 million through Sustainability Linked Loans from leading international banks, for financing its capex initiatives and reducing carbon footprint.

The loans were granted on the basis of specific performance parameters for decarbonization and safety, which the company aims to meet by deploying these funds towards capital expenditure. This will fuel the company’s growth journey as well, including achieving a higher degree of backward integration and production of value-added aluminium products.

The lenders include some of the largest international banks from the Middle East and Far East like Mashreq Bank, First Abu Dhabi Bank, Qatar National Bank Q.P.S.C., CTBC Bank and others, all of whom have newly started term lending relationships with the Vedanta Group through this facility.

This is Vedanta Group’s first such sustainability linked loan and sets the ball rolling on the company’s aspirations to invest in green growth. This serves as a positive reinforcement of the company’s endeavours to decarbonize its operations. For instance, Vedanta Aluminium has reduced its greenhouse gas (GHG) emissions intensity by 24% in FY 2022 from the 2012 baseline. It was also India’s largest consumer of renewable energy in the previous fiscal at 3 billion units, which was used to produce India’s first low carbon ‘green’ aluminium by the company, branded ‘Restora’.

See related article: Australian ‘net zero’ sustainability linked loans surge

Speaking about the funding, Mr Rahul Sharma, CEO – Aluminium Business, Vedanta Ltd. said, “Aluminium will be indispensable to a low-carbon future, with critical applications across a vast spectrum of industries ranging from electric vehicles to renewable energy and more. We intend to conceive our growth plans on the bedrock of sustainability, with a sharp focus on people safety, decarbonization of our value-chain and water positive operations. The funds raised via Sustainability Linked Loans will be invested towards growing our business sustainably and responsibly.”

Mr Tarek El Nahas, Group Head of International Banking at Mashreq, said: “We are delighted to lead this flagship deal and partner with Vedanta, the largest aluminium producer in India, in its first sustainability linked loan. We see the transition to a low carbon and resilient economy as a real opportunity to double our commitment to sustainable finance and invest in sectors that will drive responsible economic growth. This partnership represents a notable addition to the robust sustainability framework that we are deploying to create more value for our people, customers, and shareholders.”

Mr Fawaz Abusneineh, Acting Head of Global Corporate Finance, First Abu Dhabi Bank (FAB), said, “FAB is pleased to support Vedanta’s sustainability agenda through our innovative finance solutions, and to continue to deepen our investment in India’s environmental and economic future. As a leading financial institution, we are firmly committed to setting benchmarks for sustainability in banking and finance, having issued the Middle East’s first green bond in 2017, and being the first bank in the GCC to commit to achieving net-zero greenhouse gas emissions across our operations and lending portfolios. We are confident that this latest partnership will achieve significant impact by helping drive the transition to cleaner and greener manufacturing.”

Vedanta Aluminium, a business of Vedanta Limited, is India’s largest producer of aluminium, manufacturing more than half of India’s aluminium i.e., 2.27 million tonnes in FY22. It is a leader in value-added aluminium products that find critical applications in core industries. Vedanta Aluminium ranks 2nd in the Dow Jones Sustainability Index (DJSI) 2022 world rankings for aluminium industry, a reflection of its sustainable development practices. With its world-class aluminium smelters, alumina refinery and power plants in India, the company fulfils its mission of spurring emerging applications of aluminium as the ‘Metal of the Future’ for a greener tomorrow.

Topics

Related Articles

Leave a Comment

Your email address will not be published. Required fields are marked *

LOADING

Type to search

Blog

Global Taskforce Sets Out Plan to Bridge $4 Trillion Sustainability Finance Gap for SMEs
EU Lawmakers Scale Back Sustainability Rules, Raising Thresholds for Corporate Reporting and Due Diligence
Schroders Achieves 100% Renewable Electricity Across Global Operations One Year Ahead of Schedule
Mercedes F1 Nears Net Zero Goal with 99% Biofuel Logistics Coverage Across Europe
Moeve Joins Avelia as First External SAF Supplier
Google to Invest €5 Billion in Belgium to Expand AI and Carbon-Free Infrastructure by 2027
Climate Fund Managers Closes $1.07 Billion Climate Adaptation Fund for Emerging Markets
Mexico Adopts 17 Climate-Aligned Legal Clauses to Advance Sustainable Law Frameworks
EU Launches $6.1M Initiative to Scale Sustainable Algae Farming and Blue Innovation Hubs
India Plans $77B Hydropower Expansion as Strategic Buffer to China’s Upstream Dams
US Pushes Back Against EU Plan to Cut Global Shipping Emissions
Siemens, Airbus Partner to Decarbonize Three UK Manufacturing Sites by 2030
INC Introduces First Global Sustainability Certification for Nut and Dried Fruit Industry
US Delays Wyoming Coal Lease Auction Following Weak Industry Interest in Montana
ESG News Week In Review: 3 October - 12 October
Worldly Acquires GoBlu to Build Unified Sustainability Data Ecosystem for Global Supply Chains
US Declines to Back World Bank Climate Statement Signed by 19 Directors
Highland Spring Partners with Altruistiq to Track Product-Level Carbon Footprints Across UK Operations
Base Power Secures $1B to scale U.S. Home Battery Network
Deep Sky to Build 500,000-Tonne Carbon Removal Facility in Canada
","session_id":"ep-sess-1760932678-R59dSFzB","page_url":"https:\/\/esgnews.com\/vedanta-aluminium-eaises-250-million-in-sustainability-linked-loans\/","post_id":"18148","tracking_enabled":"1","original_referrer":"","has_embedded_content":""}; /* ]]> */