Birla Carbon executes $750 million Sustainability Linked Loan
Birla Carbon – one of the biggest prodcuers of virgin carbon black worldwide – has announced the closing of a US$750 million Sustainability Linked Loan (SLL) with a syndicate of more than 15 institutions on December 17, 2021. The loan funds would be utilized to refinance Birla Carbon's current debts. The ANZ Group is the deal's only sustainability coordinator.
The statement is especially significant because Birla Carbon previously announced the introduction of the Continua brand of Sustainable Carbonaceous Materials (SCM) in 2021, as well as its goal of achieving net zero carbon emissions by 2050. Since 2013, Birla Carbon has published an annual Sustainability Report including Key Performance Indicators (KPI).
Continua is a brand of "recovered Carbon Black" created in collaboration with CIRCTEC, which is quickly establishing itself as one of Europe's top pyrolysis companies, with factories in the Netherlands, Germany (ex- Pyrolyx), and Poland.
Commenting the initiative, 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.”
Direct CO2 intensity, bringing circular goods to market, and an external sustainability rating are all key KPIs for the plant. The framework, which focuses on carbon emissions and circularity, highlights the company's two most important sustainability issues while also including the larger ESG canvas through a sustainability rating.
Article by Birla Carbon.
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