Larsen & Toubro Ltd (L&T) has entered into a USD 700 million Sustainability-Linked Trade Facility (SLTF) with Standard Chartered Bank, furthering its strategic push into sustainable finance and aligning its funding framework with global ESG benchmarks.
According to the company’s filing, the SLTF links financing costs to L&T’s progress on predefined key performance indicators (KPIs) covering two core areas:
- Greenhouse gas (GHG) emissions intensity, aimed at reducing the carbon footprint of its operations.
- Fresh-water withdrawal, promoting efficient resource use and water stewardship across projects.
The structure of the facility is designed in line with the Loan Market Association’s Sustainability-Linked Loan Principles (SLLPs). L&T has committed to annual disclosures on its sustainability performance against these KPIs, backed by independent third-party assurance, ensuring accountability and transparency.
An L&T spokesperson said the deal reaffirms the group’s leadership in sustainable business practices, tying financial incentives directly to its environmental performance. The company has set long-term goals of achieving carbon neutrality by 2040 and water neutrality by 2035, with this financing seen as a milestone in its decarbonisation roadmap.
From Standard Chartered’s side, Shobana Chawla, Head of Sustainable Finance Origination, India, noted that the facility will not only support L&T’s climate and water commitments but also contribute to advancing India’s broader sustainable finance ecosystem.
The partnership comes at a time when Indian corporates are increasingly accessing sustainability-linked instruments to fund growth, reflecting both investor demand for ESG-focused capital and regulatory encouragement for climate-aligned business practices.
Shares of Larsen & Toubro were trading at Rs 3,697.00 on Monday, down 0.87 percent. The stock hit a day’s high of Rs 3,740.00 and a day’s low of Rs 3,681.30 during the session. Over the past year, it has inched up 0.59 percent, moving between Rs 2,965.30 and Rs 3,963.50. The company’s shares currently trade at a price-to-earnings multiple of 32.07 and offer a dividend yield of 0.92 percent.
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