JSW Cement raises ₹400 crore via sustainability linked loan

October 3, 2022

JSW Cement has signed its first sustainability-linked loan of ₹400 crore with MUFG Bank India. It plans to deploy these funds as capital expenditure to achieve its capacity target of 25 million tonnes per annum (MTPA) with an increasing focus on sustainability.

The cement sector has been highly carbon intensive. JSW Cement recognises the role green capital can play in transitioning business operations to a low carbon footprint. MUFG Bank acted as the mandated lead arranger and bookrunner and sustainability loan coordinator for this transaction.

DNV Business Assurance India acted as the second party opinion provider. This is the first sustainability-linked loan for JSW Cement. It is also MUFG’s first transaction undertaken out of its new branch at Gujarat International Finance Tec-City, which was launched in August as part of an enhanced service footprint to respond to the bank’s corporate clients.

JSW Cement is pursuing the goal of creating a sustainable future for India through its green cement portfolio, while MUFG Bank is committed to empowering companies pursuing such sustainable goals in its operations.

‘Sustainability vision’

Parth Jindal, Managing Director, JSW Cement said the sustainability-linked loan raised from MUFG Bank reiterates the company’s purpose of pursuing sustainable business growth while ensuring a sustainable future for the next generations.

Shashank Joshi, Deputy CEO, MUFG India said through this transaction, JSW Cement has not only reaffirmed its sustainability vision but has served as a leading flag-bearer for the industry’s net zero transition.

JSW Cement has so far raised ₹2,000 crore in the last 15 months to fund its capacity expansion to 25 MTPA by FY25. Last December, it raised ₹100 crore from State Bank of India via compulsory convertible preferential shares slated for conversion at the time of IPO. In July, Apollo Global and Synergy Metals Investments invested ₹1,500 crore through CCPS.

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