L&T Finance raises its first Rs 200 cr Sustainability Linked Rupee Loan

L&T Finance (LTF), a wholly-owned subsidiary of L&T Finance Holdings (LTFH) – Non-Banking Financial Company (NBFC), announced it has secured its first Sustainability Linked Rupee Loan of Rs 200 crore, from the Indian arm of the French multinational investment bank and financial services company - Société Générale. This is the first rupee denominated Sustainability Linked Loan (SLL) for both Société Générale and LTF.

Under the facility, LTF has committed to achieving progress on three important sustainability linked Key Performance Indicators (KPIs) relating to (i) Responsible Lending to women entrepreneurs especially in underserved communities, (ii) Water Positivity, and (iii) Carbon Sequestration.

The Sustainability-linked KPIs will be measured annually by an independent third-party assurer and the progress reported in the Company’s annual report on sustainability performance. The Company’s progress across KPIs will lead to either reduction or increase in interest rates on the credit facility, it said in a statement.

Dinanath Dubhashi, Managing Director & CEO of L&T Finance Holdings, said, “LTF is among the first NBFCs in the country to raise low-cost credit via a Sustainability Linked Rupee Loan. Going forward, sustainability-focused financing will increasingly play a critical role across borrowers and lenders in helping drive sustainable growth in the country.”

Toby Lawson, Chief Executive and Chief Country Officer of Société Générale India said, “We were delighted to support LTF in their inaugural Rupee-denominated Sustainability-Linked Loan with notably a specific commitment to increase micro loans to women entrepreneurs in the rural communities. This is aligned with our ambition to support our clients in generating positive impact by acting for communities across geographies.”

The proceeds from the loan will be used for onward lending across Wholesale, Urban and Rural Customers, the statement said.

Published on: Thursday, March 31, 2022, 04:31 PM IST