DCM Shriram Ltd announced an investment from the International Finance Corporation (IFC), the private sector arm of the World Bank Group, of USD 90 million by way of subscription to Sustainability-Linked Non-Convertible Debentures (NCD) to be issued by the company.
The transaction is structured in alignment with globally accepted International Capital Market Associations’ Sustainability-linked Bond Principles (SLBP) and Loan Market Association’s Sustainability-linked Loan Principles (SLLPs) and is anchored in the company’s newly developed Sustainability-Linked Loan (SLL) Framework, which has been independently reviewed and assured by a Second Party Opinion (SPO) provider, CareEdge ESG. This independent validation enhances transparency for stakeholders and demonstrates the robustness of the company’s sustainability roadmap.
This landmark transaction underscores DCM Shriram’s commitment to integrating sustainability into its financing strategy. The proceeds from the issuance will be utilized to strengthen the company’s strategic initiatives and support long-term growth plans. IFC’s investment will strengthen industrial capabilities through the expansion of DCM’s downstream chemicals business and foster local value creation. It will also support rural job creation by providing financing for capital expenditures for growing DCM Shriram’s agri businesses, which has widespread engagement with farmers at the grassroot level.
Leadership Commentary
Mr. Amit Agarwal, Group CFO & Executive Director, DCM Shriram Ltd, said: "This transaction represents a significant milestone in our journey towards delivering responsible growth and sustainable value creation. IFC has been our strategic partner for over two decades and this transaction marks a defining moment which will help in accelerating our growth, strengthening operational efficiency, improving environmental footprint and driving long-term resilience across our businesses."
Mr. Imad N. Fakhoury, IFC Regional Division Director for South Asia, commented: “IFC is pleased to support DCM in its growth journey while creating jobs and strengthening India’s manufacturing base, priorities that are aligned with the Country Partnership Framework India recently announced with the World Bank Group. Building on the company’s engagement with industrial labour and its extensive farmer network, this investment will deepen value-added production and support rural supply chains in furthering the country’s Make in India and Atmanirbhar Bharat ambitions.
By linking transparent, independently reviewed targets to financing terms, the investment aligns operational improvements with sustainability objectives.”
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