JSW Cement, part of the $23 billion JSW Group, has signed a Sustainability Linked Loan agreement to raise $50 million (about ₹414 crore) from BNP Paribas Singapore.
In all, the company has raised ₹800 crore in SLL-based green capital funding in two tranches.
The first SLL was raised ₹400 crore through MUFG Bank in October 2022.
JSW Cement plans to 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.
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BNP Paribas acted as the Mandated Lead Arranger and Bookrunner and the Sustainability Loan Coordinator for this transaction.
DNV Business Assurance India was the Second Party Opinion provider.
Parth Jindal, Managing Director, JSW Cement, said that the company has grown production capacity four times in the last eight years, while reducing carbon emission intensity by half.
The capacity building plans will ensure the availability of high-quality green cement and building material products to loyal consumers across the country, he added.
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Sanjay Singh, CEO and Head of Territory, BNP Paribas India said while partnering with clients in their transition toward a more sustainable economy, the acceleration of green transition of the ‘hard to abate’ sectors will be key to India meeting its net zero target.
Recognising the importance of green capital as part of its business strategy to reduce carbon footprint, JSW Cement is pursuing the goal of creating a sustainable future for India through its green cement portfolio, said the company.
JSW Cement is a green cement company with a capacity of 17 MTPA across its manufacturing units at Vijayanagar in Karnataka, Nandyal in Andhra Pradesh, Salboni in West Bengal, Jajpur in Odisha, and Dolvi in Maharashtra.
The company is present across the entire value chain of building materials comprising cement, concrete, and construction chemicals.