L&T Settles $107 Million Sustainability Linked Loan with SMBC
The EPC major announced that it closed a three-year, $107 million sustainability-linked loan (SLL) from Sumitomo Mitsui Banking Corporation (SMBC) on November 30, 2022.
The company said that SMBC was given the job of being the only sustainability coordinator and lender for the SLL facility.
Larsen & Toubro (L&T) said that this sustainability-linked loan underscores its continued commitment to its environmental, social, and governance (ESG) goals.
The interest rate on the loan will go down if the company meets two of its sustainability goals, such as reducing the amount of greenhouse gases it emits and the amount of water it uses compared to the goals.
The company said that these goals were chosen because they fit with and are important to its overall position and strategy for sustainability. The loan fulfilled the core requirements under the sustainability-linked loan principles, and DNV Business Assurance Singapore Pte. has provided a second party opinion on the firm's SLL, it added.
R Shankar Raman, Group CFO & whole time director of L&T, said the company continues to focus on achieving Water Neutrality by 2035 and Carbon Neutrality by 2040. Our long-term strategic plan also clearly outlines the ESG roadmap towards this goal. This SLL transaction with SMBC is an important step in that journey and underlines our intent on the ESG front.
Larsen & Toubro is an Indian multinational engaged in EPC projects, hi-tech manufacturing, and services. It operates in over 50 countries worldwide.
Source: Business Standard