L&T settles $107 mn sustainability linked loan with SMBC

The EPC major on Thursday announced that it has closed a three-year $107 million sustainability-linked loan (SLL) from Sumitomo Mitsui Banking Corporation (SMBC) on 30 November 2022.

SMBC was appointed as the sole sustainability coordinator and lender for the said SLL facility, the company stated.

Larsen & Toubro (L&T) said that this sustainability linked loan underscores its continued commitment to its environmental, social and governance (ESG) goals.

The facility incorporates interest rate reductions linked to the achievement of two of the company's predetermined sustainability targets, such as the reduction of greenhouse gas emission intensity and water consumption intensity against the target levels.

The company said that these targets have been selected on the basis that they are relevant and material to the firms' overarching sustainability position and strategy. The loan fulfilled the core requirements under the sustainability linked loan principles and DNV Business Assurance Singapore Pte. has provided second party opinion on the firm's SLL, it added.

R Shankar Raman, Group CFO & whole time director of L&T, said, L&T continues to focus on achieving Water Neutrality by 2035 and Carbon Neutrality by 2040. Our long-term strategic plan also clearly outlines the ESG roadmap towards this goal. This SLL transaction with SMBC is an important step in that journey and underlines our intent on the ESG front.

Larsen & Toubro is an Indian multinational engaged in EPC projects, hi-tech manufacturing and services. It operates in over 50 countries worldwide.

The EPC major's consolidated net profit rose 22.5% to Rs 2,228.97 crore on 23% rise in net sales to Rs 42,762.61 crore in Q2 FY23 over Q2 FY22.

Shares of Larsen & Toubro were up 0.84% to Rs 2,094.80 on the BSE.

Powered by Capital Market - Live News