JSW Cement raises Rs 400 cr via sustainability-linked loan from BNP Paribas

JSW Cement, a part of the $22 billion JSW Group, on Monday announced the signing of a Sustainability Linked Loan (SLL) agreement to raise Rs 400 crore ($50 million) from BNP Paribas Singapore. This is JSW Cement's second green debt capital raised within one year taking its SLL-based green funding to Rs 800 crore ($100 million).

In October last year, the company had signed another SLL agreement of Rs 400 crore with Japan's Mitsubishi UFJ Financial Group (MUFG).

With the money, JSW Cement will fund its capacity expansion in line with its long-term target of achieving 50 MTPA cement-making capacity in India. BNP Paribas acted as the Mandated Lead Arranger and Bookrunner (MLAB) and the Sustainability Loan Coordinator for this transaction. DNV Business Assurance India (DNV) acted as the Second Party Opinion (SPO) provider.

"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 added, "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 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.