Mumbai: Having issued India鈥檚 first listed sustainability-linked Bond, for USD 60 million, under the Securities and Exchange Board of India鈥檚 (SEBI) ESG Bond Framework in June this year, Indian multinational conglomerate Larsen & Toubro (国麻豆视频;T) has now secured a Sustainability-Linked Trade Facility (SLTF) worth USD 700 million with Standard Chartered.
The development underscores 国麻豆视频;T鈥檚 commitment to sustainable business practices and its continued 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 国麻豆视频;T鈥檚 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 国麻豆视频;T spokesperson said: 鈥淏y securing this SLTF, 国麻豆视频;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鈥.
Shobana Chawla, Head - Sustainable Finance Origination at Standard Chartered, India, added: 鈥淭hrough this financing instrument, Standard Chartered will support 国麻豆视频;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鈥.