JSW Cement part of USD 22 billion JSW Group, has signed a Sustainability Linked Loan(SLL) agreement to raise USD 50 million (approx. Rs 414 crore) from BNP Paribas.
This is JSW Cement’s second green debt capital raised within a short span of a few months taking its SLL-based green capital funding to US$ 100 million.
According to Parth Jindal, Managing Director of JSW Cement, “This is our second Sustainability Linked Loan in a short span of six months. In the last eight years we have grown our production capacity by four times while reducing our carbon emission intensity by half. This strategic financing will support JSW Cement in making its green cement & building material product portfolio available to consumers across the country. The SLL raised from BNP Paribas underscores our continued commitment to our ESG goals. The new capital will enable us to fund our capacity expansion with the long term target of achieving 50 MTPA capacity.”
JSW Cement plans to use the newly raised capital to fund its capacity expansions in line with its long-term target of achieving 50 MTPA cement-making capacity in India. BNP Paribas acted as the Mandated Lead Arranger and Bookrunner (MLAB) and the Sustainability Loan Coordinator for this transaction. DNV Business Assurance India (DNV) acted as the Second Party Opinion (“SPO”) provider. This transaction is among several milestones achieved on JSW Cement’s strategic direction on building a sustainable business.
Sanjay Singh, CEO and Head of Territory, BNP Paribas India, said “As a global leader in sustainable finance, BNP Paribas is committed to foster sustainable social and economic development across businesses, operations and communities; while we partner with our clients in their transition toward a more sustainable economy. In this regard, the acceleration of green transition of the ‘hard to abate’ sectors will be key to India meeting its net zero target.”
Recognising the importance of green capital as part of its business strategy to reduce carbon footprint, JSW Cement is pursuing the goal of creating a sustainable future for India through its Green cement portfolio. The SLL agreement signed with BNP Paribas is an important step in the Company’s Sustainability journey.
Singh added, “As the coordinator for the sustainability loan, we collaborated closely with the JSW Cement team to develop and publish its Sustainability Linked Loan framework, and successfully laid the foundation for the said transaction, with more to follow.”
JSW Cement has chosen to measure performance against the Sustainability Performance Target (SPT) through one key KPI of Net CO2 emissions intensity, calculated as Kg CO2 per tons of cementitious material produced (Kg CO2/tcm) covering its entire manufacturing operations comprising integrated Cement plants and grinding units.