New Delhi, Jul 10 (PTI) 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.

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"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.

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"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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