JSW Cement raises $50 million green debt

14 Jun 2023 CW Team

In October of last year, the business struck another Rs 400 crore SLL arrangement with Japan's Mitsubishi UFJ Financial Group (MUFG).

JSW Cement would use the funds to fund capacity growth in order to meet its long-term goal of reaching 50 MTPA cement-making capacity in India. BNP Paribas served as the transaction's mandated lead arranger and bookrunner (MLAB) as well as the Sustainability Loan Coordinator. DNV Business Assurance India (DNV) provided the Second Party Opinion (SPO).

"This is our second Sustainability Linked Loan signed in the last few months. During the last eight years, we have grown our production capacity four times while reducing our carbon emission intensity by half. The SLL raised from BNP Paribas underscores our continued commitment to our ESG goals," said Parth Jindal, managing director of JSW Cement.

"The new capital will enable us to fund our capacity expansion with the long-term target of achieving 50 MTPA capacity. These capacity building plans will ensure the availability of our high-quality green cement and building material products to our loyal consumers across the country," Jindal added.

Sanjay Singh, chief executive officer (CEO) and head of territory at BNP Paribas India stated, "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 is a green cement firm with 17 MTPA capacity across its manufacturing sites in Vijayanagar, Andhra Pradesh, Salboni, West Bengal, Jajpur, Odisha, and Dolvi, Maharashtra.

The corporation is present throughout the building materials value chain, including cement, concrete, and construction chemicals.

JSW Cement, a subsidiary of the $23 billion JSW Group, announced the signing of a Sustainability Linked Loan (SLL) deal with BNP Paribas Singapore to raise Rs 400 crore ($50 million). JSW Cement has raised its second green debt capital in a year, bringing its SLL-based green investment to Rs 800 crore ($100 million). In October of last year, the business struck another Rs 400 crore SLL arrangement with Japan's Mitsubishi UFJ Financial Group (MUFG). JSW Cement would use the funds to fund capacity growth in order to meet its long-term goal of reaching 50 MTPA cement-making capacity in India. BNP Paribas served as the transaction's mandated lead arranger and bookrunner (MLAB) as well as the Sustainability Loan Coordinator. DNV Business Assurance India (DNV) provided the Second Party Opinion (SPO). This is our second Sustainability Linked Loan signed in the last few months. During the last eight years, we have grown our production capacity four times while reducing our carbon emission intensity by half. The SLL raised from BNP Paribas underscores our continued commitment to our ESG goals, said Parth Jindal, managing director of JSW Cement. The new capital will enable us to fund our capacity expansion with the long-term target of achieving 50 MTPA capacity. These capacity building plans will ensure the availability of our high-quality green cement and building material products to our loyal consumers across the country, Jindal added. Sanjay Singh, chief executive officer (CEO) and head of territory at BNP Paribas India stated, 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 is a green cement firm with 17 MTPA capacity across its manufacturing sites in Vijayanagar, Andhra Pradesh, Salboni, West Bengal, Jajpur, Odisha, and Dolvi, Maharashtra. The corporation is present throughout the building materials value chain, including cement, concrete, and construction chemicals. See also: JSW Cement to set up new plants worth Rs.32 billion JSW Cement ranked #1 in the Sustainalytics ESG risk rating