Home / Companies / L&T Finance raises Rs200 crore sustainability-linked loan from Societe Generale

MUMBAI : L&T Finance on Thursday said it has secured its first sustainability-linked rupee loan of 200 crore, from the Indian arm of the French multinational investment bank and financial services company Société Générale.

Under the facility, L&T Finance has committed to achieving progress on three sustainability-linked key performance indicators (KPIs). These relate to responsible lending to women entrepreneurs especially in underserved communities; water positivity; and 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.

 “LTF is among the first NBFCs in the country to raise low-cost credit via a sustainability-linked rupee loan, a milestone achievement as the company continues on its realization journey in service of its customers" said Dinanath Dubhashi, managing director and chief executive of L&T Finance Holdings.

Dubhashi added that 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.

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