Engineering giant Larsen & Toubro has secured a $700 million sustainability-linked trade facility with Standard Chartered, underlining its push toward greener business operations.
The deal follows L&T’s $60 million sustainability-linked bond issued in June under the Securities and Exchange Board of India’s ESG bond framework.
Facility Tied to Emissions and Water Use
The SLTF links financing terms to key performance indicators such as greenhouse gas emissions intensity and freshwater withdrawal. The structure aligns with the Loan Market Association’s Sustainability-Linked Loan Principles, ensuring compliance with global market standards.
DNV, a risk management and quality assurance firm, has provided a second-party opinion on the KPIs. An independent third party will verify L&T’s annual performance disclosures, strengthening accountability and investor confidence.
Carbon and Water Neutrality
An L&T spokesperson stated that the facility reinforces the group’s commitment to sustainability. “Our long-term targets of carbon neutrality by 2040 and water neutrality by 2035 are strategic imperatives,” the spokesperson said.
The company added that sustainability guides its investments in low-carbon technologies, resource efficiency and biodiversity. It said robust ESG performance has supported investor trust and access to sustainable finance.
Standard Chartered’s role
Shobana Chawla, head of sustainable finance origination at Standard Chartered India, said the bank is supporting L&T’s decarbonization pathway. “Sustainability is a strategic focus for Standard Chartered, and we continue to play a role in building a more sustainable economy in India,” she said.
The financing is among India’s largest sustainability-linked trade facilities, reflecting the rising demand for ESG-driven capital in the country.
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