DENSO signs Rs. 400 crore SDG Loan with SMBC
DENSO has signed a Rs. 400 crore Sustainability loan from Sumitomo Mitsui Banking Corporation or SMBC. DENSO and SMBC have entered an agreement for a sustainability-linked loan for the working capital requirements of three Indian DENSO Corporation subsidiaries linked to achieving our voluntary and predetermined sustainability performance objectives.
With the Sustainability-linked loan, we aim to secure necessary financial resources to facilitate and support environmentally and socially sustainable economic activity and growth.
DENSO has committed to net zero carbon emissions with a Long Term Goal to achieve Carbon neutral without the use of carbon credits by 2035. Towards 2025, we will achieve Carbon neutral with the use of carbon credits at manufacturing operations of our three Indian subsidiaries, by using Renewable Energy to run the factories and deploy Energy Conservation measures.
Yasuaki Matsunaga, Chairman and Managing Director, Denso International India Pvt. Ltd. said, “DENSO is leading the industry toward realizing an environmentally neutral manufacturing industry, thereby creating a sustainable society”.
The Sustainability-linked loan is part of Company’s financial strategies for continuing to create corporate value even under an uncertain business environment.
This is SMBC India’s first ESG loan and SMBC will monitor the progress in achieving those pre-agreed milestones of sustainability targets by DENSO, with incentive to offer a margin reduction (lower interest rate) if those targets are achieved.
DENSO, world’s second largest automotive component manufacturer, and leading supplier of advanced automotive technology, systems and components, aims to be an inspiring company that creates a brighter future for all people through its commitment to being “green” and creating “peace of mind.”