UltraTech Cement Secures $500 Million for Sustainability Goals

UltraTech Cement has raised $500 million through a sustainability-linked loan to further its environmental, social, and governance (ESG) goals. This is the company's second such financing effort. The funds will aid UltraTech's aim to reach carbon-neutral concrete by 2050 and increase green energy usage.

Leading cement maker UltraTech on Monday announced that it has secured USD 500 million (Rs 4,193.8 crore) through a sustainability-linked loan, involving six financial institutions.

This marks the second sustainability-linked financing for UltraTech, which previously raised USD 400 million in 2021 via sustainability-linked bonds.

The Aditya Birla Group's cement arm aims to use the funds to support its ESG and sustainability targets, including its goal to achieve carbon-neutral concrete by 2050.

'This financing signifies UltraTech's ongoing commitment to align its funding strategy with its sustainability and ESG goals,' stated the company in a regulatory filing.

Defined Sustainability Performance Targets include reducing emissions and increasing green energy use from waste heat recovery systems, solar, and wind power, targeting 85% by FY30 and 100% by FY50.

Key lenders involved in the transaction are SMBC, SBI, BNP Paribas, DBS, MUFG, and Mizuho, with Sumitomo Mitsui Banking Corporation (SMBC) acting as the sole sustainability coordinator and advisor.

A signatory to the GCCA Climate Ambition 2050, UltraTech has committed to the Net-Zero Concrete Roadmap and recently acquired 26% equity in O2 Renewable Energy to fulfill green energy needs.

UltraTech, now a USD 8.4 billion (Rs 69,810 crore) enterprise, has significantly increased its production capacity and stands as the third-largest cement producer globally outside China.

The company plans to surpass its 200 MTPA production target by FY27 following ongoing expansion projects and recent acquisitions.

UltraTech's shares settled at Rs 11,337.25 on the BSE, registering a 0.11% increase.

(With inputs from agencies.)