Ultratech Cement announced it raised $500 million (around ₹4,195 crore) through sustainable linked financing.

What Happened: The amount was raised by a sustainability-linked loan with participation from six banks, the company said in its post market filing on Monday.

This is the second time that the company is raising money through sustainability financing after its first sustainability-linked bond issuance in 2021. 

The money was raised from Sumitomo Mitsui Banking Corporation (SMBC), SBI, BNP Paribas, DBS, Mitsubishi UFJ Financial Group and Mizuho. SMBC acted as the sustainability coordinator for this transaction. 

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The financing is in line with the company's recently published sustainability-linked financing framework. The company aims to achieve sustainability performance targets, including the reduction of scope 1 emissions, measured in kilograms of carbon dioxide per ton of cementitious material, by 27% by March 31, 2032, from a FY17 baseline.

The company also has to increase share of green energy from waste heat recovery system (WHRS), solar and wind power in its total energy mix to 85% by FY30 and 100% in FY50.

Price Action: Shares of Ultratech Cement rose 0.77% to ₹11,424.95 on Tuesday. 

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