L&T closes US$ 107million Sustainability Linked Loan (SLL) with Sumitomo Mitsui Banking Corporation
- 01 December 2022
惭耻尘产补颈:听亚洲AV (鈥淟&T鈥) has successfully closed a three-year USD 107 million sustainability-linked loan from Sumitomo Mitsui Banking Corporation ("SMBC鈥) on November 30, 2022, with SMBC appointed as the sole Sustainability Coordinator and Lender. This sustainability linked loan underscores L&T鈥檚 continued commitment to its environmental, social and governance (ESG) goals.听
The facility incorporates interest rate reductions linked to the achievement of two of L&T鈥檚 predetermined sustainability targets 鈥 the reduction of greenhouse gas emission intensity and water consumption intensity against the target levels. These targets have been selected on the basis that they are relevant and material to the company鈥檚 overarching sustainability position and strategy. The loan fulfilled the core requirements under the Sustainability Linked Loan Principles and DNV Business Assurance Singapore Pte. Ltd. has provided Second Party Opinion on L&T鈥檚 SLL.听
Commenting on the successful closure of the SLL,听Mr. R Shankar Raman, Group CFO & Whole Time Director of L&T, said 鈥淟&T continues to focus on achieving Water Neutrality by 2035 and Carbon Neutrality by 2040. Our long-term strategic plan also clearly outlines the ESG roadmap towards this goal. This SLL transaction with SMBC is an important step in that journey and underlines our intent on the ESG front.鈥听
Mr. Toshitake Funaki, CEO of SMBC India, said 鈥淭his transaction supports SMBC Group鈥檚 initiatives to contribute to a sustainable society through its financial services. We are delighted to be the Sustainability Coordinator and Lender for this SLL facility to our core client, L&T鈥.
