Mumbai, September 30
Having issued India's first listed sustainability-linked Bond, for USD 60 million, under the Securities and Exchange Board of India's (SEBI) ESG Bond Framework in June this year, Indian multinational conglomerate Larsen & Toubro (L&T) has now secured a Sustainability-Linked Trade Facility (SLTF) worth USD 700 million with Standard Chartered.
Mumbai (Maharashtra) [India], September 30 (ANI): Having issued India's first listed sustainability-linked Bond, for USD 60 million, under the Securities and Exchange Board of India's (SEBI) ESG Bond Framework in June this year, Indian multinational conglomerate Larsen & Toubro (L&T) has now secured a Sustainability-Linked Trade Facility (SLTF) worth USD 700 million with Standard Chartered.
The development underscores L&T's commitment to sustainable business practices and its ongoing efforts to expand its sustainable business portfolio.
The SLTF is tied to specified key performance indicators (KPI) such as the intensity of greenhouse gas emissions and freshwater withdrawal, and targets that are crucial to L&T's business operations. It is also aligned with the Loan Market Association's Sustainability-Linked Loan Principles, ensuring adherence to market standards for sustainability-linked financing.
The KPIs and targets associated with the SLTF have received a second-party opinion from DNV, a global independent expert in risk management and quality assurance. As part of this SLTF structure, performance against the KPIs will be disclosed annually and will be assured by an independent third party, so as to reinforce transparency, accountability and stakeholder confidence.
Commenting on this, an L&T spokesperson said: "By securing this SLTF, L&T reaffirms its leadership in driving sustainable business practices. Our long-term targets of carbon neutrality by 2040 and water neutrality by 2035 are strategic imperatives that underpin innovation, operational efficiency and resilience.
Sustainability is integral to our corporate ethos, guiding investments in low-carbon technologies, resource optimisation and biodiversity conservation. Our robust environmental, social and governance (ESG) performance has bolstered investor confidence, facilitating access to sustainable finance and reinforcing our position as a leader in responsible growth and long-term value creation".
Shobana Chawla, Head - Sustainable Finance Origination at Standard Chartered, India, "Through this financing instrument, Standard Chartered will support L&T on their decarbonisation journey, coming alongside the conglomerate to help facilitate the delivery of key sustainability targets. Sustainability is a strategic focus for Standard Chartered, and we continue to play a role in supporting the development of a more sustainable economy in India".
— ANI
Reader Comments
Great to see Indian companies embracing ESG principles. However, I hope this isn't just greenwashing. The independent verification by DNV is reassuring, but implementation matters more than announcements. Let's see actual results in emission reduction.
As someone working in finance, this sets a great precedent for other Indian companies. The tie-up with KPIs for emissions and water usage shows serious commitment. Standard Chartered's involvement adds credibility. Hope this becomes a trend! 📈
L&T has always been an engineering powerhouse, and now they're showing leadership in sustainability too. The carbon neutrality by 2040 target is ambitious but achievable. This is the kind of corporate responsibility we need in India. Jai Hind! ðŸ™
$700 million is a huge commitment! The annual disclosure requirement will keep them accountable. As an environmental science student, I'm particularly happy about the freshwater withdrawal targets - crucial for India's future. More companies should adopt such transparent frameworks.
Impressive to see Indian conglomerates aligning with global sustainability standards. The Loan Market Association principles ensure this isn't just tokenism. This could attract more foreign investment into India's green infrastructure projects. Well done L&T!
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