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L&T concludes $150 million loan transition with Bank of America into SLL

Jul 10, 2023

By: BlinkX Research Team

Larsen & Toubro Ltd (L&T) successfully transitioned a $150 million term loan with Bank of America to a Sustainability Linked Loan (SLL) on June 30, 2023. 

This SLL reiterates L&T’s continued commitment to its Environmental, Social and Governance (“ESG”) goals, the company said.

Further, the facility incorporates interest rate adjustments linked to the achievement of two of L&T’s predetermined sustainability targets – 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 core and material to the company’s business and the loan is in line with the Sustainability Linked Loan Principles.

Commenting on the successful closure of the SLL, R Shankar Raman, Group CFO & Whole Time Director of L&T said “L&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 toward this goal. This transition to SLL with Bank of America is yet another step in that journey and underlines our intent on the ESG front."

Source: Media Reports