Rs 6,12,800 Crore Order Book: Multinational Conglomerate Secures USD 700 Million Sustainability Linked Trade Facility with Standard Chartered
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The stock is up by 21.29 per cent from its 52-week low and has given multibagger returns of over 311 per cent in the last 5 years.
Indian multinational conglomerate Larsen & Toubro (L&T) has secured a USD 700 million Sustainability-Linked Trade Facility (SLTF) with Standard Chartered, reinforcing its focus on sustainable business practices. This comes months after L&T issued India’s first listed sustainability-linked bond under the SEBI ESG Bond Framework in June 2025.
The SLTF is a financial instrument tied directly to L&T's performance on specific environmental targets. It highlights the company's efforts to expand its sustainable business portfolio and integrate ESG principles into core operations.
Key Features of the Facility
The trade facility is structured around Key Performance Indicators (KPIs) critical to L&T's operations, including the intensity of greenhouse gas emissions and fresh-water withdrawal. The facility aligns with the Loan Market Association's Sustainability-Linked Loan Principles, ensuring compliance with international market standards.
To maintain transparency, the KPIs and targets have received a second-party opinion from DNV, a global independent expert in risk management and quality assurance. L&T’s performance against these KPIs will be disclosed annually and assured by an independent third party, strengthening stakeholder confidence.
Commitment to Sustainable Growth
An L&T spokesperson stated, "By securing this SLTF, L&T reaffirms its leadership in driving sustainable business practices." The company aims for carbon neutrality by 2040 and water neutrality by 2035. These targets drive innovation, operational efficiency, and resilience, while robust ESG performance has strengthened investor confidence and access to sustainable finance.
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Shobana Chawla, Head of Sustainable Finance Origination at Standard Chartered, India, said, "Through this financing instrument, Standard Chartered will support L&T on their decarbonisation journey and facilitate the delivery of key sustainability targets." She added that sustainability is a strategic focus for the bank and its commitment to a sustainable economy in India remains strong.
L&T, a USD 30 billion multinational, operates in EPC projects, hi-tech manufacturing, and services across multiple geographies.
About the Company
Larsen & Toubro (L&T) is a massive Indian conglomerate with its fingers in many pies. Their core business is engineering, procurement and construction (EPC) solutions across various sectors like infrastructure, power, hydrocarbon (oil & gas) and defence. They also manufacture custom-designed machinery for these industries and even have a real estate arm. L&T is a major player in IT services through subsidiaries like L&T Infotech and Mindtree and provides financial services like rural and housing finance through L&T Finance Holdings. They even handle development projects involving infrastructure, toll management and power generation.
According to Quarterly Results, the net sales increased by 11 per cent to Rs 74,392.28 crore and net profit increased by 25 per cent to Rs 5,497.26 crore in Q4FY25 compared to Q4FY24. Looking at its annual results, the net sales increased by 16 per cent to Rs 2,55,734.45 crore and the net profit increased by 15 per cent to Rs 15,037.11 crore in FY25 compared to FY24.
The company has a market cap of over Rs 5 lakh crore and has been maintaining a healthy dividend payout of 33 per cent. Life Insurance Corporation of India (LIC) owns a 13.60 per cent stake in the company as of June 2025. The company has a robust order book valued at Rs 6,12,800 crore as of June 30, 2025. The stock is up by 21.29 per cent from its 52-week low and has given multibagger returns of over 311 per cent in the last 5 years.
Disclaimer: The article is for informational purposes only and not investment advice.