L&T, Standard Chartered tie up for $700 mn sustainability-linked facility

Larsen & Toubro (L&T) has secured a $700 million sustainability-linked trade facility with Standard Chartered, tied to carbon and water targets, reinforcing its commitment to green business practices

Indian multinational conglomerate Larsen & Toubro (L&T) has secured a sustainability-linked trade facility (SLTF) worth $700 million from Standard Chartered, the companies said in a press release.

 

Earlier this year, L&T issued India’s first listed sustainability-linked bond of $60 million under the Securities and Exchange Board of India (Sebi)’s ESG Bond Framework.

 

The facility is linked to key performance indicators (KPIs) such as greenhouse gas emission intensity and freshwater withdrawal, which are central to L&T’s operations. The SLTF is structured per the Loan Market Association’s Sustainability-Linked Loan Principles, ensuring it meets recognised market standards for sustainability-linked financing, the press release said.   

 

 

  An L&T spokesperson said, “By securing this SLTF, L&T reaffirms its leadership in driving sustainable business practices. Our long-term targets of carbon neutrality by 2040 and water neutrality by 2035 are strategic imperatives that underpin innovation, operational efficiency and resilience. Sustainability is integral to our corporate ethos, guiding investments in low-carbon technologies, resource optimisation and biodiversity conservation..."

 

L&T’s KPIs and targets have received a second-party opinion from DNV, a global expert in risk management and quality assurance. Performance against these KPIs will be disclosed annually and verified by an independent third party, enhancing transparency and accountability for stakeholders.

 

Shobana Chawla, Head of Sustainable Finance Origination at Standard Chartered India, said, “Through this financing instrument, Standard Chartered will support L&T on their decarbonisation journey, coming alongside the conglomerate to help facilitate the delivery of key sustainability targets. Sustainability is a strategic focus for Standard Chartered, and we continue to play a role in supporting the development of a more sustainable economy in India.”