L&T Secures USD 700 Million Sustainability-Linked Trade Facility

Larsen & Toubro has secured a USD 700 million Sustainability-Linked Trade Facility from Standard Chartered, linked to KPIs like greenhouse gas emissions and water usage. This aligns with sustainability market standards and follows their initial USD 60 million sustainability bond in line with SEBI's ESG Bond Framework.

Larsen & Toubro announced on Monday the acquisition of a significant Sustainability-Linked Trade Facility (SLTF) worth USD 700 million from Standard Chartered. This financial undertaking is tethered to vital key performance indicators (KPIs), including the emission intensity of greenhouse gases and the efficiency of water usage, which are integral to L&T's operational objectives.

Aligned with the Loan Market Association's Sustainability-Linked Loan Principles, the SLTF ensures compliance with prevailing market standards for sustainability-linked financing. L&T underscores this alignment as a commitment to fostering sustainable economic practices.

Previously, in June, L&T issued India's inaugural listed sustainability-linked bond amounting to USD 60 million, adhering to SEBI's ESG Bond Framework. This recent USD 700 million SLTF with Standard Chartered marks a substantial financial milestone for the USD 30 billion Indian multinational, which is involved in EPC projects and high-tech manufacturing globally.

(With inputs from agencies.)