UltraTech raises $500 million through sustainability-linked financing

UltraTech Cement has secured $500 million through sustainability-linked financing, involving participation from six major banks. This marks the company’s second sustainability-linked transaction, following its inaugural bond issuance in 2021, and underscores UltraTech’s commitment to aligning its funding strategy with its sustainability and ESG goals.

The banks involved in the transaction are Sumitomo Mitsui Banking Corporation (SMBC), State Bank of India (SBI), BNP Paribas, DBS, MUFG, and Mizuho. SMBC played a pivotal role, acting as the sole sustainability coordinator and the sole advisor on the financing framework.

In a strategic move, Aditya Birla Group-owned UltraTech Cement recently approved the purchase of a 32.72% equity stake from the promoters and their associates in India Cements, increasing its ownership to 55% and making UltraTech the majority shareholder in the southern-based cement manufacturer. UltraTech Cement boasts a consolidated production capacity of 154.86 MTPA of grey cement, solidifying its position as a leading player in the industry.