JSW Cement, a subsidiary of the renowned JSW Group, has secured a Sustainability Linked Loan (SLL) deal worth INR 400 crore (USD 50 million) with BNP Paribas Singapore. This marks the company’s second green debt capital raise within a year, bringing its total SLL-based green investment to INR 800 crore (USD 100 million). The funds raised will support JSW Cement’s capacity growth plans as it strives to reach a cement-making capacity of 50 million metric tons per annum (mtpa) in India.
In October of the previous year, JSW Cement entered into another INR 400 crore SLL arrangement with Japan’s Mitsubishi UFJ Financial Group (MUFG). With the recent partnership with BNP Paribas, the company continues to attract sustainable financing partners, furthering its commitment to environmental, social and governance (ESG) objectives.
The raised capital will be utilised to fund capacity expansion initiatives, enabling JSW Cement to realise its ambitious target of 50 mtpa cement-making capacity. The company plans to invest in building additional production capabilities to meet the growing demand for its high-quality green cement and building materials across India.
BNP Paribas played a pivotal role in the transaction, serving as the mandated lead arranger and book-runner (MLAB) and acting as the Sustainability Loan Coordinator. DNV Business Assurance India provided the Second Party Opinion (SPO), ensuring transparency and credibility in the sustainability aspects of the loan.
Parth Jindal, Managing Director of JSW Cement, expressed the company’s dedication to ESG goals, highlighting their track record of expanding production capacity fourfold while reducing carbon emission intensity by half over the past eight years. Jindal emphasised that the SLL secured from BNP Paribas underscores their ongoing commitment to sustainability.
Sanjay Singh, CEO and head of territory at BNP Paribas India, emphasised the close collaboration between BNP Paribas and JSW Cement in developing the Sustainability Linked Loan framework. Singh stated that this transaction serves as a foundation for future collaborations, indicating the potential for further sustainable financing initiatives.
JSW Cement distinguishes itself as a green cement manufacturer, operating with a total capacity of 17 mtpa across manufacturing sites in Vijayanagar, Andhra Pradesh; Salboni, West Bengal; Jajpur, Odisha; and Dolvi, Maharashtra. The company is actively involved in the entire building materials value chain, encompassing cement, concrete, and construction chemicals.
