Larsen & Toubro Limited (L&T) on Monday announced that it has successfully completed the transition of a $150 million term loan with Bank of America into a Sustainability Linked Loan (SLL). This transition highlights L&T’s ongoing commitment to its Environmental, Social, and Governance (ESG) goals.
The SLL 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,” the company 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 towards 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,” said R Shankar Raman, Group CFO & Whole Time Director, L&T.
Earlier in May, L&T had posted its fiscal fourth quarter profit at Rs 3,986.78 crore, up 10.1 per cent from Rs 3,620.69 crore in the same quarter last year. It recorded revenue from operations at Rs 58,335.15 crore, registering an increase of 10.4 per cent from Rs 52850.67 crore in the fourth quarter of FY22. At the group level, L&T had said that it received orders worth Rs 230,528 crore during the financial year. These orders were received across multiple segments like public spaces, hydel & tunnels, irrigation systems, ferrous metals, oil & gas, power transmission & distribution and defence sectors. Meanwhile, international orders stood at Rs 86,523 crore during the year and comprised 38 per cent of the total order inflow.