Birla Carbon closes US$750 million Sustainability Linked Loan

On 17 December, Birla Carbon executed a US$750 million Sustainability Linked Loan (SLL) with a syndicate of more than 15 banks and intends to use the proceeds from the loan to refinance its existing debts. Key Performance Indicators (KPIs) linked to the facility include: “direct CO2 intensity, bringing circular products to market, and an external rating of Sustainability”. The fund’s direct connection with “bringing circular products to market” could be interpreted as an indication that the company is willing to invest in technologies such as pyrolysis which seeks to recover carbon black from end-products such as tyres.

The carbon black manufacturer considers this to be a deal “of added significance” as earlier in 2021 it announced the launch of the Continua brand of sustainable carbonaceous materials (SCM) and an aspiration to achieve net zero carbon emissions by 2050.

“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,” comments Surendra Goyal, Birla Carbon’s chief financial officer. “Linking our borrowing programmes to these pillars of growth sets us on a path that will double our success.”

“Sustainability and innovation are two of Birla Carbon’s key pillars responsible for our leadership in the industry,” says John Loudermilk, chief executive officer, Birla Carbon. “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.”

The ANZ Group is the sole sustainability coordinator for the SLL.