DCM Shriram has secured a $90 million investment from International Finance Corporation (IFC), marking a major sustainability-linked financing deal aimed at expanding its chemicals and agri businesses while boosting rural supply chains.

 

The funding will come through subscription to Sustainability-Linked Non-Convertible Debentures (NCDs) issued by the company, tying the financing directly to environmental and operational performance targets.

 

The deal has been structured in line with global sustainability financing standards set by the International Capital Market Association’s Sustainability-Linked Bond Principles and the Loan Market Association’s Sustainability-Linked Loan Principles.

 

DCM Shriram’s newly created Sustainability-Linked Loan Framework has also undergone an independent review by CareEdge ESG, providing a second-party opinion designed to strengthen transparency and validate the company’s sustainability roadmap.

 

The investment is expected to fund expansion in DCM Shriram’s downstream chemicals operations while supporting capital expenditure for its agri businesses, which work extensively with farmers at the grassroots level. The move is also expected to drive rural job creation and local value generation.

 

“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,” said Amit Agarwal, Group CFO & Executive Director, DCM Shriram.

 

IFC said the investment aligns with broader efforts to strengthen India’s manufacturing ecosystem and rural supply chains.

 

“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,” said Imad N. Fakhoury.

 

The transaction marks one of the latest examples of sustainability-linked financing gaining traction in India’s industrial sector, as companies increasingly tie funding to measurable environmental and social outcomes.