L&T transitions USD 150 mn term loan into sustainability-linked loan

MUMBAI: Larsen and Toubro Limited has completed the transition of a USD 150 million term loan with Bank of America to a sustainability-linked loan.

The transaction completed on June 30, according to L&T, reiterates the company's continued commitment to its Environmental, Social and Governance (ESG) goals.

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

L&T informed stock exchanges on Monday that the loan 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.

The 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.

Larsen & Toubro is a USD 23 billion Indian multinational engaged in Engineering, procurement, and construction (EPC) projects, among others. It operates in over 50 countries worldwide.

Larsen & Toubro achieved consolidated revenues of Rs 183,341 crore for the year ended March 31, 2023, recording a healthy year-on-year growth of 17 per cent, aided by strong execution of a large order book. International revenues during the year at Rs 68,787 crore constituted 38 per cent of the total revenue.

The Company for the year ended March 31, 2023, posted a total consolidated Profit After Tax (PAT) of Rs 10,471 crore, registering a robust growth of 21 per cent compared to the previous year.