UPL raises second tranche of USD700 Million sustainability linked loan

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MUMBAI : UPL Ltd. (NSE: UPL & BSE: 512070), a global leader of crop protection products and sustainable agricultural solutions on Monday said  that it has raised a second tranche of USD700 Million sustainability linked loan (SSL) on 31st December 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 USD750 million was raised in March and April 2021. Of the USD1.45 billion, the debt maturity for USD1.25 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 USD 1.45 billion acquisition loan to SLL with an opportunity to further reduce the interest cost is an example of our focus on sustainability and ESG providing a cost advantage.

“We are delighted to raise this second tranche of Sustainability linked facility which is not only a reflection of UPL’s sustainability performance but also provides us an opportunity to engage with new a set of investors. We are transforming our business from products to a solutions business through our technology platforms – Natural Plant Product (NPP), Nurture.farm and the wide portfolio of differentiated and bio-solution products, and our diverse and expansive product pipeline. Taken together, these agricultural solutions can significantly reduce carbon emissions, mitigate the impact of global warming, and deliver shared prosperity for our people and our planet” Jai Shroff, Global Chief Executive Officer of UPL Limited, said.

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