Birla Carbon Closes First Sustainability-Linked Loan of $750 Million

Birla Carbon, a global leader in manufacturing high quality carbon black solutions, has announced the execution of a US$ 750 million Sustainability Linked Loan (SLL) on December 17, 2021, with a syndicate of more than 15 banks. The proceeds from the loan will be used to refinance Birla Carbon’s existing debts. The ANZ Group is the sole sustainability coordinator for this deal.

The announcement is of added significance as earlier in 2021, Birla Carbon announced the launch of the Continua™ brand of Sustainable Carbonaceous Materials (SCM) and its aspiration to achieve net zero carbon emissions by 2050. Birla Carbon has also released its annual Sustainability Report with Key Performance Indicators (KPI) since 2013.

Speaking about this program, John Loudermilk, Chief Executive Officer, Birla Carbon, said, “Sustainability and innovation are two of Birla Carbon’s key pillars responsible for our leadership in the industry. Pursuing the goal of sustainable business growth, aligned with our Purpose (to Share the Strength), has brought immense synergies of shared aspirations with all our business partners and stakeholders.”

Echoing his thoughts, Surendra Goyal, Chief Financial Officer, Birla Carbon, said, “With the launch of SCMs with the Continua™ brand, our aspiration to reach net zero carbon emissions by 2050, and the Sustainability Linked Loan, we are now better placed to give Birla Carbon a real competitive advantage, in the years to come. Linking our borrowing programs to these pillars of growth sets us on a path that will double our success.”

Key KPI’s to the facility include; direct CO2 intensity, bringing circular products to market, and an external rating of Sustainability. Pivoting on carbon emissions and circularity, the structure emphasizes the business’s two most relevant sustainability aspects while encompassing the broader ESG canvas through a sustainability rating.