L-;T gets $107 million sustainability-linked loan from SMBC

2 Dec 2022 , 08:11 AM

Major EPC business Larsen & Toubro Limited said today that it has concluded a three-year, $107 million sustainability-linked loan with Sumitomo Mitsui Banking Corporation (SMBC).

The facility includes interest rate reductions tied to achieving two of L&T’s preset sustainability targets: lowering the intensity of greenhouse gas emissions and the intensity of water consumption relative to the target levels.

According to the company’s press release, these goals were chosen because they are pertinent and important to the organization’s overarching sustainability posture and strategy. The loan complied with the fundamental criteria set forth in the sustainability-related loan guidelines. On L&T’s SLL, DNV Business Assurance Singapore Pte. Ltd. offered a second-party assessment.

L&T continues to work on reaching Carbon Neutrality by 2040 and Water Neutrality by 2035, according to Group CFO R Shankar Raman, who talked to ET. The ESG roadmap towards this objective is also explicitly outlined in our long-term strategic plan. This SLL deal with SMBC marks a significant turning point in that journey and demonstrates our commitment to the ESG market.

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