Larsen & Toubro transitions USD 150 million loan into Sustainability Linked Loan (SLL)

10 Jul 2023 , 02:27 PM

Larsen & Toubro Limited announced that it has successfully converted a USD 150 million term loan with Bank of America to a Sustainability Linked Loan (SLL) on June 30, 2023. This SLL reaffirms L&T’s ongoing commitment to its Environmental, Social, and Governance (ESG) objectives.

Interest rate adjustments are tied to the achievement of two of L&T’s predetermined sustainability targets. This includes a reduction in greenhouse gas emission intensity and a reduction in water consumption intensity relative to target levels. 

R Shankar Raman, Group CFO & Whole Time Director of Larsen & Toubro stated, “L&T is committed to achieve Water Neutrality by 2035 and Carbon Neutrality by 2040. Company’s long-term strategic plan also envisions the ESG roadmap towards this goal. The said transition with Bank of America is a step forward in that journey and highlights company’s intent on the ESG front.”

These targets were chosen because they are core and material to the company’s operations, and the loan adheres to the Sustainability Linked Loan Principles.

At around 2.15 PM, Larsen & Toubro was trading 0.48% lower at Rs 2,437.55 apiece, against the previous close of Rs 2,449.35 on NSE.

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