DCM Shriram raises Rs 200 crore from HSBC India as sustainability linked loan

DCM Shriram raises Rs 200 crore from HSBC India as sustainability linked loan

DCM Shriram, which has a presence in sugar, fertiliser and chemical businesses, has raised a Sustainability Linked Loan (SLL) of Rs 200 crore from HSBC India to fund its capex plan in Gujarat.

This strategic financial move is aimed at supporting the company's ongoing capital expenditure programme in Bharuch, Gujarat, it said in a statement.

"This is our first Sustainability Linked Loan obtained from HSBC India, marking our unwavering dedication to our Environmental, Social, and Governance (ESG) objectives," Amit Agarwal, Executive Director & Group CFO of DCM Shriram Ltd, said.

"We have embarked on projects worth approximately Rs 3,500 crore, predominantly within our sugar and chemical divisions. Notably, projects in our sugar business have already been commissioned, while those in the chemicals business are nearing completion," he said.

Ajay Sharma, Head-Commercial Banking at HSBC India, said it is committed to providing financing to support and incentivise the transition to a more sustainable economy.

"This collaboration between DCM Shriram Ltd and HSBC India signifies a shared commitment towards fostering sustainability and responsible business practices, further solidifying their dedication to a greener and more responsible future," Sharma said.