On Monday, JSW Cement said it had raised Rs 400 crore from MUFG Bank India as its first sustainability-linked loan. The company plans to deploy the fund for capital expenditure (CAPEX) to achieve its annual capacity target of 25 million tonnes by FY25.

While this credit line from MUFG Bank India is the first sustainability-linked loan for the company, it is also the bank’s first transaction undertaken out of its new IFSC unit branch, launched in August 2022 in the Gift City. The Managing Director of JSW Cement, Parth Jindal, said the funding would enable the company to meet its goal of 25 million tonnes per annum capacity by FY25. It also forms part of the company’s environmental, social, and governance (ESG) objectives.

It is to be noted that JSW Cement has an installed capacity of 17 million tonnes across its units at Nandyal in Andhra Pradesh, Salboni in West Bengal, Vijayanagar in Karnataka, Jajpur in Odisha and Dolvi in Maharashtra.
The company’s subsidiary Shiva Cement is investing Rs 1,500 crore in a 1.36 million tonne clinker unit in the Sundergarh district of Odisha and a 1 million tonne grinding unit.

The Mitsubishi UFJ Financial Group (MUFG) is one of the world’s leading financial groups headquartered in Tokyo with over 360 years of history.