By Anupama Ghosh
Copyright thehindubusinessline
Larsen & Toubro has secured a $700 million Sustainability-Linked Trade Facility (SLTF) with Standard Chartered, the Indian multinational conglomerate announced on Monday.
The facility ties financial terms to key performance indicators, including greenhouse gas emission intensity and freshwater withdrawal targets that are critical to L&T’s operations. The arrangement aligns with the Loan Market Association’s Sustainability-Linked Loan Principles.
DNV, a global risk management expert, has provided a second-party opinion on the KPIs and targets. L&T will disclose annual performance against these metrics, with independent third-party assurance to ensure transparency.
The deal follows L&T’s issuance of India’s first listed sustainability-linked bond worth $60 million under SEBI’s ESG Bond Framework in June 2025.
An L&T spokesperson said the facility reinforces the company’s leadership in sustainable business practices, supporting its long-term goals of carbon neutrality by 2040 and water neutrality by 2035.
Shobana Chawla, Head of Sustainable Finance Origination at Standard Chartered India, said the bank will support L&T’s decarbonization journey and help facilitate delivery of key sustainability targets.
L&T is a $30 billion multinational engaged in EPC projects, hi-tech manufacturing, and services across multiple geographies.
Published on September 29, 2025
