MUMBAI: Tata Communications on Thursday said it has raised a USD 250 million sustainability loan from DBS Bank, ANZ and Export Development Canada (EDC).
According to a statement, the loan is for a five-year term and is called a sustainability-linked loan (SLL), with progress on carbon emissions targets set at the cost.
The interest rate margin of the loan will be adjusted up or down according to the progress Tata Communications achieves on its carbon emissions reduction targets, claiming it is the first transaction of its kind in India.
Such short-term targets, which draw a link between the cost of banking facilities and progress achieved on key environmental milestones, are in line with the company's long-term ambition to be net zero across its global operations by 2035, the statement said.
Rajat Verma, head of institutional banking group at DBS Bank India, hinted at other corporations also opting for similar facilities, and said the lender will help companies collectively adopt practical decarbonization strategies to shape a more sustainable future. Looking forward to enable.
"We see significant opportunities for other companies to align their financing with their environmental commitments and believe this facility will demonstrate strong sustainability performance for other borrowers in India and across Asia," said Stella Saris Chow, ANZ's head of sustainable finance. It will pave the way for setting goals."
Kabir Ahmed Shakir, chief financial officer of Tata Communications, said he believes in sustainability as a value creator and said he intends to bring about positive change.
According to a statement, the loan is for a five-year term and is called a sustainability-linked loan (SLL), with progress on carbon emissions targets set at the cost.
The interest rate margin of the loan will be adjusted up or down according to the progress Tata Communications achieves on its carbon emissions reduction targets, claiming it is the first transaction of its kind in India.
Such short-term targets, which draw a link between the cost of banking facilities and progress achieved on key environmental milestones, are in line with the company's long-term ambition to be net zero across its global operations by 2035, the statement said.
Rajat Verma, head of institutional banking group at DBS Bank India, hinted at other corporations also opting for similar facilities, and said the lender will help companies collectively adopt practical decarbonization strategies to shape a more sustainable future. Looking forward to enable.
"We see significant opportunities for other companies to align their financing with their environmental commitments and believe this facility will demonstrate strong sustainability performance for other borrowers in India and across Asia," said Stella Saris Chow, ANZ's head of sustainable finance. It will pave the way for setting goals."
Kabir Ahmed Shakir, chief financial officer of Tata Communications, said he believes in sustainability as a value creator and said he intends to bring about positive change.