- Raises Rs. 585 crore Social/Sustainability Linked Rupee Loan in FY23 compared with Rs. 200 crore in FY22
- Proceeds from the loan to be used for onward lending for Agriculture and Allied Activities
- The core purpose for raising the funds is to support our onward lending activities towards agriculture and agri-allied loans especially in the form of tractor and micro loans qualifying under Priority Sector Lending (PSL) category: Sachinn Joshi, Group Chief Financial Officer, L&T Finance
NE BUSINESS BUREAU
MUMBAI, JUNE 15
L&T Finance Limited (LTF), one of the leading Non-Banking Financial Companies of the country, announced that it has successfully secured Rs 585 crore of Social/Sustainability Linked Rupee Loan (SLL) in FY23 up 193 percent as against Rs 200 crore in FY22.
Under the facility, LTF has committed to achieving progress on three important sustainability linked objectives relating to responsible lending to women entrepreneurs especially in underserved communities, water positivity, and carbon sequestration.
Overall, since the first fund raising in March 2022 LTF has so far raised Rs 885 crore of which nearly 70 percent has been raised in FY23. LTF is actively involved in supporting agricultural activities and in helping Indian women get a sustainable livelihood, thus, becoming self-reliant through lending and CSR initiatives.
The sustainability linked objectives will be measured annually by an independent third-party assurer and the progress will be reported in the Company’s annual report on sustainability performance. The company’s progress across objectives will lead to either reduction or increase in interest rates on the credit facility.
Speaking on the development, Sachinn Joshi, Group Chief Financial Officer, L&T Finance said, “For India, a sustainable future is contingent upon financial inclusion, and NBFCs like LTF have a crucial role to play in this mission. We are among the first NBFCs in India to raise low-cost funds through SLL. This is a key achievement for us as we continue our focus on our strategic plan Lakshya 2026 in which one of the key pillars is Environmental, Social and Governance (ESG). The core purpose for raising the funds is to support our onward lending activities towards agriculture and agri-allied loans especially in the form of tractor and micro loans qualifying under Priority Sector Lending (PSL) category.”
