L&T closes $107 million sustainability-linked loan

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Larsen & Toubro Ltd announced this week it has successfully closed a three-year $107 million sustainability-linked loan with Sumitomo Mitsui Banking Corp. (SMBC) appointed as the sole sustainability coordinator and lender.

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

“These targets have been selected on the basis that they are relevant and material to the company’s overarching sustainability position and strategy. The loan fulfilled the core requirements under the Sustainability Linked Loan Principles,” stated the company.

DNV Business Assurance Singapore provided a second-party opinion on L&T’s loan.

L&T targets water neutrality by 2035 and carbon neutrality by 2040. “This SLL transaction with SMBC is an important step in that journey and underlines our intent on the ESG front,” said R Shankar Raman, group CFO and whole-time director of L&T.

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