Larsen & Toubro (L&T), the Indian multinational conglomerate, has raised a USD 700 million Sustainability-Linked Trade Facility (SLTF) from Standard Chartered, further strengthening its sustainable finance portfolio. The move follows L&T’s issuance of India’s first listed sustainability-linked bond, worth USD 60 million, under SEBI’s ESG Bond Framework in June this year.
The SLTF is tied to key performance indicators (KPIs) central to L&T’s operations, including greenhouse gas emissions intensity and freshwater withdrawal, and is aligned with the Loan Market Association’s Sustainability-Linked Loan Principles. These KPIs and targets have been independently reviewed by DNV, a global assurance and risk management firm. Performance will be monitored annually, with third-party assurance to ensure transparency and accountability.
An L&T spokesperson said the deal reinforced the company’s ambition to achieve carbon neutrality by 2040 and water neutrality by 2035. “Sustainability is integral to our corporate ethos, guiding investments in low-carbon technologies, resource optimisation and biodiversity conservation. Our strong ESG performance has bolstered investor confidence and facilitated access to sustainable finance,” the spokesperson added.
Shobana Chawla, Head of Sustainable Finance Origination at Standard Chartered India, said: “Through this financing instrument, Standard Chartered will support L&T on their decarbonisation journey, helping deliver on key sustainability targets. Sustainability is a strategic focus for Standard Chartered, and we continue to play a role in enabling the development of a more sustainable economy in India.”
The transaction underscores L&T’s growing role in driving India’s sustainability agenda and highlights the increasing importance of sustainability-linked financing in the country’s transition towards a low-carbon economy.
