L&T Finance Holdings said that its wholly owned subsidiary L&T Finance has secured its first Sustainability Linked Rupee Loan of Rs 200 crore, from the Indian arm of Societe Generale.
SociGale is a French multinational investment bank and financial services company.
This is the first rupee denominated Sustainability Linked Loan (SLL) for both SociGale and L&T Finance.
L&T Finance is actively involved in helping Indian women get a sustainable livelihood and become self-reliant through lending and CSR initiatives.
Under the facility, L&T Finance 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.
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, a milestone achievement as the Company continues on its retailisation journey in service of its customers.
Going forward, sustainability-focused financing will increasingly play a critical role across borrowers and lenders in helping drive sustainable growth in the country.
The proceeds from the loan will be used for onward lending across wholesale, urban and rural customers.
L&T Finance Holdings (LTFH) is a non-banking financial company (NBFC). It being a core investment company (CIC), carries out its businesses through its wholly owned subsidiaries. LTFH is among the market leaders in farm equipment finance, two-wheeler finance, as well as micro loans and continues to be one of the leading players in financing infrastructure sectors like renewables and roads.
The NBFC's consolidated net profit rose 7% to Rs 307.88 crore on a 11.4% decline in total income to Rs 3,150.50 crore in Q3 FY22 over Q3 FY21.
The scrip shed 0.43% to currently trade at Rs 80.25 on the BSE.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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