Tata Communications has secured a five-year USD250 million sustainability-linked loan (SLL) from ANZ, DBS Bank, and Export Development Canada (EDC). ANZ served as the Lead Sustainability Coordinator, with DBS Bank and EDC acting as Joint Sustainability Coordinators.
This transaction marks Tata Communications’ inaugural SLL under its new framework. The framework, a pioneering initiative in India’s sector, aims to tie the company’s financing to critical objectives such as reducing carbon emissions (non-financial covenants) that are fundamental to its long-term sustainability strategy.
The loan’s interest rate margin will be adjusted based on Tata Communications’ progress towards its carbon emission reduction targets. This approach aligns short-term financing costs with advancements in key environmental goals, reflecting the company’s broader commitment to achieving Net Zero emissions across its global operations by 2035.
Stella Saris Chow from ANZ emphasized their lead role in Tata Communications’ first SLL, highlighting opportunities for aligning financing with environmental goals across Asia. Kabir Ahmed Shakir, Tata Communications’ CFO, sees the SLL as pivotal for sustainability and aims to set new standards in responsible finance. Rajat Verma of DBS Bank India underscored their role in shaping sustainable finance with Tata Communications, supporting their carbon reduction journey and fostering a resilient business future.