UPL raises second tranche of $700 million sustainability linked loan

UPL Ltd. | Pesticides & Agrochemicals | Chemicals & Fertilizers | BSE: 512070 | NSE: UPL

03 Jan 2022 Evaluate

UPL has raised a second tranche of $700 million sustainability linked loan (SSL) on December 31, 2021 with a reduction of interest cost by 35bps and an opportunity for a further reduction of 5bps on 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 for $1.25 billion gets extended by two years to FY 2026 (against FY2024 earlier). The SLL also provides a complete pre-payment flexibility.

UPL is on a mission to reimagine sustainability across everything it does - developing and distributing solutions that secure our future whilst safeguarding the environment. It is UPL's firm belief that agriculture is an underappreciated resource and is an integral part of the solution to the climate crisis. The swapping of $1.45 billion acquisition loan to SLL with an opportunity to further reduce the interest cost is an example of the company’s focus on sustainability and ESG providing a cost advantage.

UPL is global player of crop protection products has customer base in 123 countries. It has subsidiary offices in Argentina, Australia, Bangladesh, Brazil, China, Canada, Denmark, Indonesia, France, Hong Kong, Japan, Korea, Mauritius, Mexico, New Zealand, Russia, Spain, Taiwan, South Africa, USA, UK, Vietnam and Zambia.