L&T Gets $700 Million Sustainability-Linked Trade Facility with Standard Chartered

Larsen & Toubro (L&T), India’s $30 billion engineering and infrastructure giant, has secured a $700 million Sustainability-Linked Trade Facility (SLTF) from Standard Chartered. Announced on September 29, 2025, the facility strengthens L&T’s position as a leader in sustainable financing and responsible growth.

Green Financing Aligned with Global Principles

The $700 million SLTF is tied to measurable performance indicators such as greenhouse gas (GHG) emission intensity and freshwater withdrawal levels. Structured in line with the Loan Market Association’s Sustainability-Linked Loan Principles, the agreement also carries a second-party opinion from DNV, with annual KPI disclosures to be independently assured.

As per the exchange filings, an L&T spokesperson remarked: “By securing this SLTF, L&T reaffirms its leadership in driving sustainable business practices. Our long-term targets of carbon neutrality by 2040 and water neutrality by 2035 are strategic imperatives that underpin innovation, operational efficiency and resilience.”

Standard Chartered’s Commitment

Shobana Chawla, Head – Sustainable Finance Origination, Standard Chartered India, said: “Through this financing instrument, Standard Chartered will support L&T on their decarbonisation journey, coming alongside the conglomerate to help facilitate the delivery of key sustainability targets. Sustainability is a strategic focus for Standard Chartered, and we continue to play a role in supporting the development of a more sustainable economy in India.”

This financing follows L&T’s $60 million sustainability-linked bond issued in June 2025, the first of its kind listed under SEBI’s ESG Bond Framework.

About the Companies

L&T: A diversified multinational with revenues of around $30 billion, L&T operates across EPC projects, hi-tech manufacturing, and services. With over eight decades of industry leadership, the company has committed to achieving carbon neutrality by 2040 and water neutrality by 2035.

Standard Chartered: Operating across 54 markets, Standard Chartered is listed on the London Stock Exchange and the Hong Kong Stock Exchange. Its brand promise, “Here for good”, reflects its commitment to global sustainable finance.

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L&T Share Price Performance 

As of September 29, 2025, at AM, the L&T share price is trading at ₹3,713.10 per share, reflecting a decline of 0.44% from the previous closing price. 

Conclusion

The $700 million SLTF reflects L&T’s determination to link financing directly with sustainability goals while reinforcing Standard Chartered’s role in India’s green economy. As L&T works toward its ambitious 2040 carbon-neutral and 2035 water-neutral milestones, this facility marks a critical step in aligning global capital with long-term environmental commitments.

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