Following its landmark issuance of India’s first listed sustainability-linked bond worth $60 million earlier this year under SEBI’s ESG Bond Framework, Larsen & Toubro (L&T) has now obtained a $700 million Sustainability-Linked Trade Facility in partnership with Standard Chartered. This new arrangement highlights L&T’s ongoing dedication to embedding sustainable practices across its business operations and expanding its green finance portfolio.
The facility is connected to specific key performance measures, including reductions in greenhouse gas emissions and freshwater usage, which are central to L&T’s operational goals. It follows the guidelines set by the Loan Market Association’s Sustainability-Linked Loan Principles to maintain industry standards for environmentally focused financing. An independent review of these targets was provided by DNV, a global expert in risk and quality assurance.
Under the agreement, L&T will publish yearly updates on progress toward these goals, with verification by a third party to ensure transparency and build trust among stakeholders.
An L&T representative stated: “Securing this trade facility reaffirms our commitment to sustainable growth. Our targets to achieve carbon neutrality by 2040 and water neutrality by 2035 drive innovation and operational improvements. Sustainability shapes every aspect of our strategy—from investing in clean technologies to optimizing resource use and protecting biodiversity. This strong focus on environmental, social, and governance factors has strengthened investor trust and enabled access to responsible financing, reinforcing our leadership in creating long-term value.”
Shobana Chawla, Head of Sustainable Finance Origination at Standard Chartered India, commented: “This partnership supports L&T’s path to lower emissions and advancing key sustainability objectives. At Standard Chartered, sustainability is a core priority, and we remain committed to fostering a greener economy in India.”
Larsen & Toubro (L&T) is a leading Indian multinational conglomerate with a strong presence across multiple industries, including engineering, construction, manufacturing, technology, and financial services. Known for its commitment to innovation and excellence, L&T has played a pivotal role in transforming India’s infrastructure landscape.
The company has delivered landmark projects in sectors such as transportation, power, water, and heavy engineering, earning a reputation for its technical expertise and project execution capabilities. L&T’s strategic focus on digital transformation, sustainability, and smart technologies has enabled it to maintain a competitive edge in the global marketplace.
L&T’s diversified portfolio also includes significant contributions to the aerospace, defense, and IT sectors. The company’s robust research and development capabilities ensure it remains at the forefront of cutting-edge technologies, from automation to artificial intelligence.
Source: https://themachinemaker.com/
