Gold
Denso ties up Rs 4 billion green loan
Sumitomo Mitsui Banking Corporation will provide a Rs 4 billion green loan to Japanese car component giant Denso's three Indian subsidiaries.
Three Indian subsidiaries of the Denso Corporation have entered into an arrangement with SMBC for a green loan, also known as a sustainability-related loan, to cover their working capital needs. The financing is intended to act as a motivator for Denso to meet its own sustainability goals.
The auto parts manufacturer has set a goal to achieve net zero carbon emissions at the three Indian subsidiaries' plants by 2025. This will be accomplished by running the industries on renewable energy while simultaneously lowering the overall energy expense.
The company’s progress toward reaching those sustainability goals will be tracked by SMBC. If the goals are met in accordance with the agreed-upon benchmarks, the cost of the loan may decrease and a reduced interest rate may be applied.
Additionally, this partnership will assist SMBC in achieving its objective of delivering more sustainability-related loans to businesses.
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