JSW Cement on Monday announced that it has signed a Sustainability Linked Loan (SLL) agreement with BNP Paribas to raise $50 million (approximately Rs 414 crore). “This is JSW Cement’s second Green Debt Capital raised within a short span of few months taking its SLL-based green capital funding to $100 million,” the company said in a statement.
The company will 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, JSW Cement said. Meanwhile, DNV Business Assurance India (DNV) acted as the Second Party Opinion (SPO) provider.
“In the last eight years, we have grown our production capacity by four times while reducing our carbon emission intensity by half. The new capital will enable us to fund our capacity expansion with the long term target of achieving 50 MTPA capacity,” said Parth Jindal, Managing Director, JSW Cement.
JSW Cement is pursuing the goal of creating a sustainable future through its Green cement portfolio and the SLL agreement signed with BNP Paribas is an important step in this regard. “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,” it said.