Larsen & Toubro closes $107 million sustainability-linked loan with SMBC

Larsen & Toubro (L&T) on Thursday said it has closed a $107 million sustainability-linked loan with Sumitomo Mitsui Banking Corporation (SMBC).

Sustainability-linked loans aim to facilitate and support environmentally and socially sustainable economic activity and growth.

"L&T has successfully closed a three-year $107 million sustainability-linked loan from Sumitomo Mitsui Banking Corporation (SMBC) on November 30, 2022, with SMBC appointed as the sole sustainability coordinator and lender," the engineering and construction conglomerate said in a filing to BSE.

The facility incorporates interest rate reductions linked to the achievement of two of L&T's predetermined sustainability targets – reduction of greenhouse gas emission intensity and water consumption intensity against the target levels.

"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 road map towards this goal," L&T Group CFO and Whole Time Director R Shankar Raman said.