Tata Communications secures five-year USD250 million sustainability-linked loan from ANZ, DBS Bank and EDC
New Delhi : Tata Communications has secured a five-year, USD 250 million sustainability-linked loan (SLL) from ANZ, DBS Bank, and Export Development Canada (EDC). ANZ served as the Lead Sustainability Coordinator, while DBS Bank and EDC were the Joint Sustainability Coordinators. This marks the first SLL for Tata Communications under its new sustainability-linked loan framework. This pioneering framework in the Indian sector aims to tie the company’s funding to essential objectives, such as carbon emission reduction targets, which are crucial for the company’s long-term sustainability performance.
The interest rate margin of the loan will be adjusted based on Tata Communications’ progress in meeting its carbon emission reduction targets. These short-term targets create a direct link between the cost of banking facilities and the achievement of key environmental milestones, aligning with the company’s long-term goal of achieving Net Zero emissions across its global operations by 2035.
Stella Saris Chow, Head of Sustainable Finance, International, ANZ said: “ANZ is pleased to have played a lead role in Tata Communications’ maiden SLL. We see significant opportunities for other companies to align their financing with their environmental commitments and believe the facility will pave the way for other borrowers in India and across Asia to set robust sustainability performance targets. ANZ has a strong presence in Asia and we are well-positioned to support our clients to reduce emissions and transition to net zero.”
Kabir Ahmed Shakir, CFO, Tata Communications said: “The pioneering transaction is a landmark step towards supporting our belief in sustainability as a value creator. We intend to drive positive change not just within our own operations but also play a leading role in sustainable finance. We are confident that this innovative financing model will pave the way for a more resilient, more responsible future for businesses of all sizes and locations.”