UltraTech Cement raises $500 million via sustainability-linked financing

India's UltraTech Cement said on Monday it has raised $500 million through a sustainability-linked loan with contributions from six banks.

The fundraise marks the Aditya Birla Group-backed cement maker's second sustainability-linked financing, after it raised $400 million in 2021.

Sustainability-linked finance is a method through which borrowers meet environmental, social and governance targets while raising funds.

UltraTech said its sustainability targets include reducing emissions and increasing the share of green energy.

Sumitomo Mitsui Banking Corporation acted as sole sustainability coordinator for the transaction, UltraTech said, while the lenders were SMBC, State Bank of India, BNP Paribas, DBS, MUFG and Mizuho.

Shares of UltraTech Cement closed 0.4 per cent lower.