United Phosphorus Limited, a producer of crop protection products and agricultural raised a second tranche of $700 Million sustainability linked loan (SLL) on 31st December 2021. It has reduction of interest cost by 0.35 per cent and an opportunity for a further reduction of 0.05 per cent on achievement of sustainability indicators agreed with the banks.

The first tranche of $750 was raised in March and April 2021. UPL will also be able to extend the debt maturity for $1.23 billion of the total $1.45 billion raised through SLL, by another 2 years to FY26. The SLL also provides a complete pre-payment flexibility the press release said.

“The swapping of $1.45 billion acquisition loan to SLL with an opportunity to further reduce the interest cost is an example of our focus on sustainability and Environment and Social Governance, providing a cost advantage” said the press note.

Sustainability performance

Jai Shroff, Global Chief Executive Officer of UPL , said “We are delighted to raise this second tranche of sustainability linked facility which is not only a reflection of UPL’s sustainability performance but also provides us an opportunity to engage with new a set of investors. We are transforming our business from products to a solutions business through our technology platforms – Natural Plant Product (NPP), Nurture farm and the wide portfolio of differentiated and bio-solution products, and our diverse and expansive product pipeline. Taken together, these agricultural solutions can significantly reduce carbon emissions, mitigate the impact of global warming, and deliver shared prosperity for our people and our planet.”

Anand Vora, Global Chief Financial Officer at UPL, said “UPL is proud to be one of the India’s first company to draw a sustainability linked loan and the largest by an Indian Corporate till date. The second tranche was driven by our constant focus on balance sheet management, reduction of interest costs and continued focus on sustainable and profitable business.”

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