JSW Cement Signs First Sustainability Linked Loan
JSW Cement has signed its first sustainability-linked loan of Rs 400 crore (the US $ 50 mn) with MUFG Bank India. It plans to deploy these funds as capital expenditure to achieve its capacity target of 25 MTPA with an increased focus on sustainability. Parth Jindal, MD of the company said, “The sustainability-linked loan raised from MUFG Bank reiterates our purpose of pursuing sustainable business growth while ensuring a sustainable future for the next generation. The new capital will enable us to meet our goals of achieving 25 MTPA capacity in the near term.” MUFG Bank acted as the Mandated Lead Arranger and Book runner (MLAB) and the Sustaibability Loan Co-ordinator for this transcation. DNV Business Assurance India acted as the Second Party Opinion Provider. JSW Cement has developed a Sustainability -Linked Loan Framework to ink its capital-raising with long-term ESG Objectives. The sustainability-linked loan framework is also aligned with the sustainability-linked loan principles administered by the Loan Market Association, Asia Pacific Loan Market Association, and Loan Syndication & Trading Association in March 2022. JSW Cement has chosen to measure performance against the sustainability Performance Target (SPT) through one of its key KPI of Net Co2 emissions intensity, calculated as kg CO2 per tonnes of cementitious material produced (Kg CO2/tcm) covering its entire manufacturing operations comprising integrated cement plants and grinding units.
Tags : JSW Cement sustainability MUFG Bank India Parth Jindal MD