DCM Shriram Secures USD 90 mn Sustainability-Linked NCDs
ECONOMY & POLICY

DCM Shriram Secures USD 90 mn Sustainability-Linked NCDs

DCM Shriram Limited has secured an investment commitment from the International Finance Corporation (IFC) of United States dollar (USD) 90 mn by way of subscription to Sustainability-Linked Non-Convertible Debentures (NCD) to be issued by the company. The transaction has been structured in alignment with the International Capital Market Association Sustainability-linked Bond Principles and the Loan Market Association Sustainability-linked Loan Principles and is anchored in the company's newly developed Sustainability-Linked Loan (SLL) Framework. The framework has been independently reviewed and assured by CareEdge ESG as a Second Party Opinion (SPO) provider. This independent validation is said to enhance transparency for stakeholders and to demonstrate the robustness of the company's sustainability roadmap.

The proceeds from the issuance will be utilised to strengthen the company's strategic initiatives and to support long-term growth plans. IFC's investment is intended to strengthen industrial capabilities through expansion of the company's downstream chemicals business and to foster local value creation. The financing is also expected to support rural job creation by providing capital expenditure for the expansion of agri businesses that have widespread engagement with farmers at the grassroots level. The structure links sustainability targets to financing terms to align operational improvements with environmental and social objectives.

DCM Shriram is a diversified business with activities across the agri value chain, chemicals and building material products and operates multiple manufacturing facilities across India with access to captive power at key units. The company emphasises sustainable growth, innovation and long-term value creation while driving operational efficiency and competitive strength across its businesses. The investment by IFC will support expansion plans and is designed to deepen value-added production and to strengthen supply chains. The transaction also aligns with national priorities for manufacturing and rural development.

Senior company leadership described the transaction as a significant milestone in the company's journey towards responsible growth and sustainable value creation, noting IFC's long-standing strategic partnership over two decades and expressing confidence that the investment will accelerate growth, improve operational efficiency, reduce environmental footprint and enhance long-term resilience. Both parties emphasised transparent, independently reviewed targets.

DCM Shriram Limited has secured an investment commitment from the International Finance Corporation (IFC) of United States dollar (USD) 90 mn by way of subscription to Sustainability-Linked Non-Convertible Debentures (NCD) to be issued by the company. The transaction has been structured in alignment with the International Capital Market Association Sustainability-linked Bond Principles and the Loan Market Association Sustainability-linked Loan Principles and is anchored in the company's newly developed Sustainability-Linked Loan (SLL) Framework. The framework has been independently reviewed and assured by CareEdge ESG as a Second Party Opinion (SPO) provider. This independent validation is said to enhance transparency for stakeholders and to demonstrate the robustness of the company's sustainability roadmap. The proceeds from the issuance will be utilised to strengthen the company's strategic initiatives and to support long-term growth plans. IFC's investment is intended to strengthen industrial capabilities through expansion of the company's downstream chemicals business and to foster local value creation. The financing is also expected to support rural job creation by providing capital expenditure for the expansion of agri businesses that have widespread engagement with farmers at the grassroots level. The structure links sustainability targets to financing terms to align operational improvements with environmental and social objectives. DCM Shriram is a diversified business with activities across the agri value chain, chemicals and building material products and operates multiple manufacturing facilities across India with access to captive power at key units. The company emphasises sustainable growth, innovation and long-term value creation while driving operational efficiency and competitive strength across its businesses. The investment by IFC will support expansion plans and is designed to deepen value-added production and to strengthen supply chains. The transaction also aligns with national priorities for manufacturing and rural development. Senior company leadership described the transaction as a significant milestone in the company's journey towards responsible growth and sustainable value creation, noting IFC's long-standing strategic partnership over two decades and expressing confidence that the investment will accelerate growth, improve operational efficiency, reduce environmental footprint and enhance long-term resilience. Both parties emphasised transparent, independently reviewed targets.

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