Mumbai, August 27, 2024 – UltraTech Cement Limited (“UltraTech”), the cement flagship company of the Aditya Birla Group, has successfully raised USD 500 million through a sustainability-linked loan, demonstrating its continued leadership in sustainable finance.
This financing was made possible through strong partnerships with leading financial institutions, including Sumitomo Mitsui Banking Corporation (SMBC), which acted as the sole Sustainability Coordinator and advisor, along with prominent global banks such as SBI, BNP Paribas, DBS, MUFG, and Mizuho.
This transaction marks UltraTech’s second major sustainability-linked financing initiative, following its inaugural bond issuance in 2021. The company’s innovative financing strategy highlights its role as a pioneer in aligning corporate finance with sustainability objectives, setting a benchmark for environmentally responsible financial practices in the global cement industry.
UltraTech’s commitment to sustainability goes beyond financial innovation; it is deeply embedded in the company’s core business strategy. The USD 500 million raised is part of UltraTech’s broader sustainability-linked framework, which outlines ambitious targets aimed at reducing the company’s environmental footprint.
By 2032, UltraTech has committed to reducing Scope 1 emissions by 27% from a FY17 baseline. This substantial reduction in carbon emissions will be measured in kilograms of CO2 per ton of cementitious material, reinforcing UltraTech’s role in contributing to global efforts to combat climate change.
In addition to reducing emissions, UltraTech has set a clear pathway towards decarbonization with a focus on renewable energy. The company aims to increase the share of green energy—derived from waste heat recovery systems (WHRS), solar, and wind power—to 85% of its total energy mix by FY30, with the ultimate goal of achieving 100% by FY50. This long-term commitment reflects UltraTech’s leadership in sustainability and its vision to become a net-zero cement producer, aligning with global climate ambitions.
UltraTech’s sustainability journey has not been without its challenges, but the company’s focus on innovation and resilience has enabled it to consistently meet its environmental goals while driving business growth. From its pioneering waste heat recovery systems to its large-scale renewable energy projects, UltraTech has continuously set new benchmarks for environmental stewardship in the cement industry. These achievements have been instrumental in attracting strong partnerships with global financial institutions that share UltraTech’s commitment to building a sustainable future.
As UltraTech continues to lead the industry in sustainability, it also presents an attractive proposition for potential investors. The company’s strong financial foundation, combined with its long-term sustainability strategy, positions it for future growth in an increasingly environmentally conscious market. Investors can take confidence in UltraTech’s commitment to driving both financial returns and positive environmental impact. The company’s continued focus on innovation and sustainability ensures that it remains a key player in the global cement industry and a leader in responsible corporate practices.
UltraTech Cement Limited, part of the Aditya Birla Group, is one of the largest cement producers in the world, outside of China, with a total Grey Cement capacity of 154.86 MTPA.
