Tata Communications closes maiden sustainability loan of $250 million from ANZ, DBS Bank and EDC
Tata Communications on Thursday announced that it had secured its first sustainability-linked loan of $250 million from ANZ, DBS Bank and Export Development Canada. The three lenders are set to jointly finance the five-year loan, with ANZ taking point as the lead sustainability coordinator.
«The transaction is the first SLL for Tata Communications under the company’s new SLL framework. Through the framework, a first of its kind in the sector in India, Tata Communications intends to link its funding with key objectives such as carbon emission reduction targets (non-financial covenants) that are core and material for the company’s long-term sustainability performance,» the Indian communications company said in a release.
Tata's $250 million loan is linked to its progress on its carbon emission reduction, with the interest rate margin of the loan set to be adjusted based on these targets and the company's performance.
«Such short-term targets, creating a link between the cost of banking facilities and progress achieved on key environmental milestones, are consistent with the company’s longer-term ambitions,» a release from Tata Communications said.
Australia-New Zealand based ANZ has taken part in 111 such sustainable finance deals, having made $144 billion worth such deals in FY23, with the lender hoping the deal with Tata will see more sustainability deals in the subcontinent.
«We see significant opportunities for other companies to align their financing with their environmental commitments and believe the
