Shree Renuka Sugars: DBS Bank is providing Shree Renuka Sugars with a Rs 1.75 crore bridging loan

0
Shree Renuka Sugars Ltd (SRSL), a subsidiary of Wilmar International Ltd, Singapore, has secured a Rs 1.75 billion (SGD 31 million) five-year transition financing facility from DBS.

“The proceeds will be used to fund the expansion of SRSL’s sustainable bioethanol business in India. This is believed to be the first interim loan made by a foreign bank to the Indian biofuel industry,” the company said in a press release.

Sunil Ranka, CFO of SRSL said: “Bioethanol production is nothing new in India. But it is key to transitioning the energy sector’s dependence on fossil fuels towards more sustainable biofuels, which will have a lower carbon footprint and lead to the country’s energy independence. To provide some perspective, India today has an ethanol production capacity of about 849 million liters. For India’s target of 20% blending of ethanol in gasoline by 2025, the market will need a capacity of 1,700 million liters (80% plant efficiency) and here we hope to contribute to the growth of the global biofuels industry by expanding our bioethanol production capacity to contribute to the achievement of this ambitious but meaningful goal.”

Niraj Mittal, Managing Director and Country Head of Institutional Banking Group, DBS Bank India, said: “The shift to bioethanol and other biofuels is expected to play a valuable role in moving the power and energy sectors towards net zero. These alternative fuel blends offer the land and sea transportation industry a viable path to decarbonization while reducing their dependence on fossil fuels. As a bank, we are committed to funding the transition to a lower-carbon future, and this recent Transitional Loan Facility with Shree Renuka Sugars reaffirms our ongoing commitment to work with our like-minded partners to collectively transition industries from brown to tan and incrementally to green and working point to becoming net zero in the coming decades.”

“In October 2021, DBS became the first bank in Singapore to become a signatory to the United Nations-convened, industry-led Net-Zero Banking Alliance (NZBA). As a signatory, DBS is committed to aligning operational and attributable greenhouse gas (GHG) emissions from its loan and investment portfolios towards net-zero by 2050 or earlier,” the press release reads.

Share.

About Author

Comments are closed.