UltraTech Cement has raised $500 million through a sustainability-linked loan. It has been given by six banks, namely, Sumitomo Mitsui Banking Corporation (SMBC), State Bank of India, Development Bank of Singapore Limited (DBS), BNP Paribus, Mitsubishi UFJ Financial Group (MUFG) and Mizuho. The sustainability coordinator for this transaction was SMBC. They were also the only advisor on UltraTech’s sustainability-linked financing framework.
In 2021, the company had raised $400 million through sustainability-linked bond issuance. UltraTech Cement will use these funds to meet the environmental, social, and governance (ESG) goals and sustainability goals of the Aditya Birla Group firm. UltraTech Cement also aims to become carbon neutral in concrete segment by 2050.
The sustainability performance targets are aimed at reducing emissions and increasing the share of green energy in the total energy blend to 85 per cent by 2030 and 100 per cent in 2050. This will be procured from waste heat recovery system, solar and wind power.
In April 2024, UltraTech Cement had commissioned 100 MW inter-state transmission system connected solar power project under group captive scheme in Rajasthan. The power from these projects would be supplied to UltraTech’s units in Rajasthan, Gujarat and Himachal Pradesh.
