L&T Secures $700 Mn Sustainability-Linked Trade Facility With Standard Chartered

Indian multinational conglomerate Larsen & Toubro (L&T) has now secured a Sustainability-Linked Trade Facility (SLTF) worth USD 700 Mn with Standard Chartered. Having issued India’s first listed sustainability-linked Bond, for USD 60 Mn, under the Securities and Exchange Board of India’s (SEBI) ESG Bond Framework in June this year, supports L&T’s sustainable business practices and its efforts to augment the sustainable business portfolio.

The SLTF is tied to specified key performance indicators (KPI) such as the intensity of greenhouse gas emissions and fresh-water 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.

L&T is one of the “First Indian Corporate” to issue an ESG Bond under the SEBI’s newly introduced ESG and sustainability linked bond framework. As part of this transaction, L&T aims to meet environmental targets including a decrease in the intensity of freshwater withdrawal and emissions of greenhouse gases.

These initiatives also supports company’s goal to achieve water neutrality by 2035 and carbon neutrality by 2040. The company while sharing these details in an Q1 FY26 Results Conference Call said it has issued Rs.5 billion in non-convertible debentures with a three-year maturity and a 6.35% coupon rate in this period. 

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