Key Points of Tata Steel Green Loan Talks:
- Tata Steel is in discussions with several lenders to secure a green loan worth up to $400 million for capital expenditure.
- The loan’s tenor could be around five years.
- This could become Tata Steel’s first green loan, according to Bloomberg-compiled data.
- The steelmaking industry requires fresh financing to reduce its carbon footprint.
- A 2022 report by McKinsey Quarterly suggests that $4.4 trillion in investments is necessary for a global shift to low-emissions production over the next 30 years.
- Tata Steel has lower environmental metrics than its competitors, including greenhouse gas emissions, air quality, and water and waste management.
- Tata Steel did not respond to requests for comments when contacted by Bloomberg.
Details of Tata SteelGreen Loan Talks:
Tata Steel in Discussions for $400 Million Green Loan to Fund Capital Expenditure
Tata Steel Ltd., one of India’s leading steelmakers, is reportedly in discussions with several lenders, including Bank of America Corp., HSBC Holdings Plc, JPMorgan Chase & Co., and Mitsubishi UFJ Financial Group Inc., to secure a green loan worth up to $400 million. According to unnamed sources, the loan’s funds will be used for capital expenditure and could have a tenor of around five years.
Although no final decision has been made, this debt could become Tata Steel’s inaugural green loan, as per Bloomberg-compiled data. When contacted by Bloomberg, Tata Steel did not respond to requests for comments.
The steelmaking industry is known for its carbon-intensive processes, and the sector will require fresh financing to mitigate its environmental impact. According to a 2022 report by McKinsey Quarterly, a global transition to low-emissions production would necessitate $4.4 trillion in investments over the next three decades.
Tata Steel has fallen behind its rivals on various environmental metrics, including greenhouse gas emissions, air quality, and water and waste management, according to data collected by Bloomberg.
About Tata Steel:
Tata Steel Ltd, headquartered in Mumbai, Maharashtra, is an Indian multinational steel-making company that operates out of Jamshedpur, Jharkhand. It is a subsidiary of the Tata Group.
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