According to Jayant Acharya, joint managing director, and chief executive of JSW Steel, India’s steel consumption is breaking the global trend and is expected to expand by 7-8% due to growing government expenditure and indications of a rebound in private sector investments.
The effect on steel demand since China’s reopening has been less than anticipated, but India’s demand remains strong, maintaining excellent profitability, bolstered by suppressed energy prices and decreased inflation, which will keep production costs under control. JSW Cement has received a $50 million Sustainability Linked Loan (SLL) from BNP Paribas Singapore to support its environmental activities, according to the JSW Group firm.
This is JSW Cement’s second round of SLL-based green capital fundraising in as many months, bringing its total green debt capital to $100 million.
For this transaction, BNP Paribas functioned as the mandated lead arranger and book runner (MLAB) and sustainability loan coordinator, while DNV Business Assurance India (DNV) served as the second-party opinion provider. JSW Cement raised its first SLL from MUFG Bank in October 2022, valued at 400 crores. The current round of fundraising brings the company’s total green capital raise to Rs 800 crore.
“During the last eight years, we have grown our production capacity four times while reducing our carbon emissions intensity by half,” Parth Jindal, managing director of JSW Cement, was quoted as saying in the statement. “The SLL raised from BNP Paribas underscores our continued commitment to Environmental, social, and governance (ESG) goals.”
JSW Cement, part of the $23 billion JSW Group, intends to utilize the new funds to support capacity increases. This will be in accordance with the company’s long-term goal of reaching 50 MTPA cement-making capacity in India.
Through its green cement portfolio, the business said that it seeks to build a sustainable future for India.
