JSW Cement announced raising Rs 400 crore through a sustainability-linked loan from MUFG Bank India to fund the firm's capacity expansion plans.
MUFG Bank acted as the mandated lead arranger and bookrunner (MLAB) and the sustainability loan coordinator for this transaction, JSW Cement said. DNV Business Assurance India (DNV) acted as the second party opinion (SPO) provider.
This was MUFG’s first transaction from its new office at Gujarat International Finance Tec City (GIFT City), which was set up in August.
The fundraise will help the cement maker towards its announced target of building up 25 million tonnes per annum capacity by FY25 from 17 million tonnes at present.
This is the third fund raise by JSW Cement in the last 15 months. It had raised Rs Rs 100 crore from the State Bank of India last December and Rs 1,500 crores from Apollo Global and Synergy Metals Investments in July 2021.
The sustainability-linked loan reiterated the company’s purpose of pursuing sustainable business growth, said Parth Jindal, Managing Director of JSW Cement.
The cement industry is one of the leading polluters, necessitating a move towards sustainable processes and materials in the sector.
JSW Cement uses industrial waste as feed material for making cement. This includes slag from JSW Steel, the flagship company of the JSW Group.