Tata Comms raises $250 mn sustainability linked loan

livemint.com:

Tata Communications has raised $250-million loan from ANZ, DBS and Export Development Canada for five years under the sustainability-linked loan (SLL) framework, chief financial officer Kabir Ahmed Shakir said. The company will look at the framework for long term debt financing and refinancing of existing debt, he said. "Our endeavour is to finance our future borrowings (including refinancing of existing debt as it matures) under the SLL released.

The quantum and tenure of which will be a function of funding requirements at the time of borrowing. As we speak, we have just closed a $250 million loan—from ANZ, DBS and Export Development Canada—for a tenure of five years under this framework," he said in response to queries from Mint. Tata Communications, which provides enterprises with communications technology solutions, said in a statement on Thursday that it has adopted the SLL and will align all future long-term debt financing with its environmental commitments.

The Tata group company is the first in its sector to have taken this initiative. It has committed to be net zero in carbon emissions by 2035 across its global operations. Loans within the SLL framework have margins tied to carbon emission reduction targets, or non-financial covenants, incentivising continuous improvement in sustainability performance.