Sumitomo Mitsui Banking Corporation (SMBC) successfully closed a 64 billion yen (US$440 million) syndicated external commercial borrowing (ECB) with a blue loan tranche as part of the facility for India’s Housing and Urban Development Corporation (Hudco) from its Singapore Branch along with two other banks.

SMBC is the mandated lead arranger and bookrunner, joint ESG loan coordinator, agent bank and the authorized dealer bank in this transaction. This is Hudco’s second ECB borrowing from SMBC and its maiden foreign currency blue loan transaction.

A portion of the loan would qualify as a blue loan since the foreign currency borrowing was used for onward disbursement to support the Jal Jeevan Mission in India, an ambitious programme launched by the Indian government with the objective of providing functional household tap connections to every rural household.

SMBC worked closely with Hudco, the bank says, to establish their sustainable financing framework, which is in line with the Green and Social Loan Principles. These are globally recognized methodologies developed by the Loan Market Association, Asia-Pacific Loan Market Association, and Syndications and Trading Association to achieve positive social outcomes for the company and green initiatives outlined by the Reserve Bank of India.

“The deal with Hudco is a testament of our credentials globally and further embodies our mission towards investing a cumulative total of 50 trillion yen into sustainability related financing globally by 2030,” adds Hiroyuki Mesaki, SMBC India’s country head. “This deal will also contribute towards creating a better life for underserved communities.”