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Allen & Overy has advised UltraTech Cement Limited on the first USD-denominated sustainability-linked bonds from South Asia and South East Asia

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Pallavi Gopinath Aney

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Felipe Duque

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17 February 2021

Allen & Overy has advised UltraTech Cement Limited (UTCL) on its debut Rule 144A/Reg S offering of USD400million 2.80% sustainability-linked notes due 2031 (SLBs). The SLBs are the first USD-denominated sustainability-linked bonds from South Asia and South East Asia. 
UTCL has set a target to reduce greenhouse gas emissions from 2017 levels by 22.7% by 31 May 2030. Proceeds from the SLBs will be used for refinancing INR-denominated debt, capital expenditure and general corporate purposes.

UTCL is the largest cement company in India and the third largest globally (excluding China). Its operations span India, Sri Lanka, Bahrain and the United Arab Emirates. It is part of the Aditya Birla group, a multinational conglomerate which houses entities such as Grasim Industries Limited, Hindalco Industries Limited, Birla Carbon, Vodafone Idea Limited and Aditya Birla Capital Limited. 

Pallavi Gopinath Aney, partner in A&O’s International Capital Markets team, commented:
 

This landmark issuance comes amidst the increasing demand for ESG and sustainability-linked bonds and demonstrates UltraTech’s commitment to sound environmental management of its business activities. We expect to see more such issuances like this from other issuers as investor demand continues to drive the sustainable financing market.

This transaction is a continuation of the considerable work that Allen & Overy has been doing for clients on ESG-related financings, including advising the Government of the Hong Kong Special Administrative Region of the People’s Republic of China on its recent green bonds issuance. 

The A&O team was led by capital markets partners Pallavi Gopinath Aney and Felipe Duque, with support from Julie Song and Bryan O’Brien.

Disclaimer: 
The information contained herein is restricted and is not for publication, distribution or release in or into the United States of America, Australia, Canada, Japan or South Africa. This announcement is not an offer of securities for sale or a solicitation of an offer to purchase securities in the United States or any other jurisdiction. The securities referred to herein (the “Securities”) have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not, subject to certain exceptions, be offered or sold in the United States or to or for the account or benefit of a person located in the United States.