International Finance Corporation backs DCM Shriram Ltd with sustainability-linked financing to expand chemicals and agri businesses while strengthening responsible growth

DCM Shriram Ltd, a diversified business conglomerate with interests in chemicals, agri inputs and building material products, has raised $ 90 million through Sustainability-Linked Non-Convertible Debentures (NCDs) subscribed by the International Finance Corporation (IFC), the private sector arm of the World Bank Group. Announced in New Delhi, the investment marks a major step in aligning the company’s financing strategy with its sustainability and responsible growth goals.

The transaction has been structured in accordance with globally recognized sustainability frameworks, including the Sustainability-Linked Bond Principles (SLBP) of the International Capital Market Association and the Sustainability-Linked Loan Principles (SLLP) of the Loan Market Association. The issuance is anchored in DCM Shriram’s newly developed Sustainability-Linked Loan (SLL) Framework, which has received independent validation through a Second Party Opinion by CareEdge ESG, enhancing transparency and reinforcing the credibility of the company’s sustainability roadmap.

The proceeds from the debenture issuance will support the company’s strategic growth initiatives, including expansion of its downstream chemicals business and strengthening its agri-value chain operations. The financing is also expected to support rural employment generation through capital expenditure in agri businesses that engage extensively with farmers at the grassroots level, while contributing to local value creation and industrial capacity expansion.

Commenting on the development, Amit Agarwal, Group CFO and Executive Director at DCM Shriram Ltd, said the transaction marks a significant milestone in the company’s journey toward sustainable value creation. He highlighted that IFC has been a strategic partner for more than two decades and that the latest investment will help accelerate growth, enhance operational efficiency and improve the company’s environmental footprint across business segments.

Echoing this sentiment, Imad N. Fakhoury, Regional Division Director for South Asia at IFC, noted that the investment will support India’s manufacturing ecosystem while strengthening rural supply chains and job creation. He added that the initiative aligns with broader development priorities outlined in the World Bank Group’s partnership framework with India, while also supporting national initiatives such as Make in India and Atmanirbhar Bharat.

By linking financing terms to transparent, independently verified sustainability targets, the transaction reflects the growing role of sustainability-linked instruments in corporate finance. For DCM Shriram, the investment represents a strategic step toward integrating environmental and social objectives into long-term business growth while strengthening its contribution to India’s evolving industrial and agricultural landscape.