UPL raises $ 700 million in sustainability loans

UPL Ltd., a global leader in sustainable crop protection products and agricultural solutions, today announced that it has raised the second tranche of $ 700 million in Sustainable Development Loans (SSL) on December 31, 2021, with a reduction in interest charges of 35 basis points and a possibility of a further reduction of 5 basis points on the achievement of sustainability indicators agreed with the banks. The first tranche of $ 750 million was raised in March and April 2021.

Of the $ 1.45 billion, the debt maturity of $ 1.25 billion is extended by two years until fiscal year 2026 (compared to fiscal year 2024 earlier). SLL also offers full prepayment flexibility.

The company said in a statement, “UPL’s mission is to reinvent sustainability in everything it does – develop and distribute solutions that secure our future while preserving the environment. UPL firmly believes that agriculture is an underestimated resource and an integral part of the solution to the climate crisis. ” He added, “The exchange of a $ 1.45 billion acquisition loan to SLL with an opportunity to further reduce interest charges is an example of our focus on sustainability and ESG offering a cost advantage. “

Jai Shroff, Global Managing Director of UPL Limited, said, “We are delighted to lift this second tranche of the sustainability related facility, which not only reflects UPL’s sustainability performance, but also offers us the opportunity to engage with a new set of investors. We transform our business from a product to a solutions business through our technology platforms – Natural Plant Product (NPP), Nurture.farm and the broad portfolio of differentiated products and organic solutions, as well as our diverse product portfolio. and extended. , these agricultural solutions can dramatically reduce carbon emissions, mitigate the impact of global warming and deliver shared prosperity to our people and our planet. “

Anand Vora, Global Chief Financial Officer of UPL, said: “UPL is proud to be one of the first Indian companies to secure a sustainability related loan and the largest from any Indian company to date. The second tranche was motivated by our constant focus on balance sheet management. , reduced interest charges and continued focus on sustainable and profitable businesses. “

In 2021, the company was ranked by Sustainalytics as the top performing global crop protection company among its peers for the second year in a row. UPL also recorded strong performances in the most recent Dow Jones Sustainability Index (61% improvement from 2018) and FTSE Russell (68% above the industry average).

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