Larsen & Toubro (L&T) on Monday said it has completed the "transition" of a USD 150-million term loan into a sustainability-linked loan with Bank of America.
Such loans incentivise corporate houses' sustainability performance with lower interest rates.
"The sustainability-linked loan (SLL) reiterates L&T's continued commitment to its Environmental, Social and Governance (ESG) goals," the infrastructure major said in a statement. The transaction for the sustainability-linked loan (SLL) was completed on June 30, 2023.
R Shankar Raman, group CFO and whole-time director of L&T, said the company continues to focus on achieving water and carbon neutrality by 2035 and carbon neutrality by 2040. The company's long-term strategic plan also outlines the ESG road map 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," he said.
India-based L&T is a USD 23-billion multinational engaged in engineering procurement and construction (EPC) projects, hi-tech manufacturing and services operating in over 50 countries.
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