Vedanta Aluminium, India’s largest aluminium producer, has raised USD 250 million in Sustainability Linked Loans from leading international banks to fund capital expenditures and reduce its carbon footprint.
The loans were made based on specific performance parameters for decarbonization and safety, which the company intends to meet by allocating these funds to capital expenditure. This will also fuel the company’s growth journey, including greater backward integration and the production of value-added aluminium products.
Some of the largest international banks from the Middle East and Far East, such as Mashreq Bank, First Abu Dhabi Bank, Qatar National Bank Q.P.S.C., CTBC Bank, and others, are among the lenders who have recently begun term lending relationships with the Vedanta Group through this facility.
This is Vedanta Group’s first sustainability-linked loan, which kicks off the company’s plans to invest in green growth. This strongly supports the company’s efforts to decarbonize its operations. Vedanta Aluminium, for example, has reduced its greenhouse gas (GHG) emissions intensity by 24% in FY 2022 compared to the 2012 baseline. It was also India’s largest renewable energy consumer in the previous fiscal year, with 3 billion units consumed, which was used to produce India’s first low carbon ‘green’ aluminium, ‘Restora’.
Vedanta Aluminium, a division of Vedanta Limited, is India’s largest aluminium producer, producing more than half of the country’s aluminium, or 2.27 million tonnes in FY22. It is a market leader in value-added aluminium products with critical applications in core industries. In addition, Vedanta Aluminium is ranked second in the Dow Jones Sustainability Index (DJSI) 2022 world rankings for the aluminium industry, reflecting its commitment to sustainable development. With its world-class aluminium smelters, alumina refinery, and power plants in India, the company can fulfil its mission of promoting emerging applications of aluminium as the “Metal of the Future” for a greener tomorrow.
“Aluminium will be indispensable to a low-carbon future, with critical applications across a vast spectrum of industries ranging from electric vehicles to renewable energy and more. We intend to conceive our growth plans on the bedrock of sustainability, with a sharp focus on people safety, decarbonization of our value-chain and water positive operations. The funds raised via Sustainability Linked Loans will be invested towards growing our business sustainably and responsibly.”
Mr Rahul Sharma, CEO – Aluminium Business, Vedanta Ltd
