JSW Cement, part of the $23 billion JSW Group, announced on Monday the signing of a Sustainability-Linked Loan (SLL) agreement to raise Rs 400 crore ($50 million) from Singapore-based BNP Paribas. This is the second green debt funding raised by JSW Cement in a year, bringing its SLL-based green financing to Rs 800 crore ($100 million).

In October last year, the company signed another SLL deal worth Rs 400 crore with Japan’s Mitsubishi UFJ Financial Group (MUFG).

With this money, JSW Cement will finance its capacity expansion to achieve its 50 MTPA cement capacity in India. BNP Paribas acted as Mandated Lead Arranger, Bookrunner (MLAB), and Sustainability Facility Coordinator for the transaction. DNV Business Assurance India (DNV) acted as Second Party Opinion (SPO) provider.

“This is the second sustainability-linked loan we have signed in the past few months. We have quadrupled our capacity over the past eight years while halving our carbon intensity. SLL, raised by BNP Paribas, highlights This reflects our ongoing commitment to our ESG goals,” said Parth Jindal, Managing Director, JSW Cement.

“The new capital will allow us to finance our capacity expansion and achieve our long-term target of 50 MTPA capacity. These capacity building plans will ensure that we deliver our premium green cement and building materials products to loyal consumers across the country,” added Jindal.

Sanjay Singh, Chief Executive Officer (CEO) and Regional Head, India, BNP Paribas, added: “As the coordinator for sustainability lending, we worked closely with the JSW Cement team to develop and launch its sustainability-linked lending framework and successfully laid the groundwork for the transaction described above, with many more to follow.”

JSW Cement is a green cement company with manufacturing plants at Vijayanagar in Karnataka, Nandyal in Andhra Pradesh, Salboni in West Bengal, Jajpur in Odisha and Dolvi in ​​Maharashtra, with a production capacity of 17 MTPA.

The company is present across the entire construction materials value chain, including cement, concrete and construction chemicals.