Lawson’s teams are committed to support India through sustainability journey on SDG
The Indian arm of the French multinational investment bank and financial services company, Société Générale, has lent Rs.200 crore to L&T Finance’s (LTF) first Sustainability Linked Rupee Loan (SLL) which is for onward lending across Wholesale, Urban and Rural Customers.
“This SLL is aligned with our ambition to support our clients in generating positive impact by acting for communities across geographies. Our teams are committed to support our clients in India through their sustainability journey and to advance on the United Nations Sustainable Development Goals,” said Toby Lawson, Chief Executive and Chief Country Officer of Société Générale India.
“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,” he said on 31 Mar 2022.
For India, a sustainable future is contingent upon financial inclusion, and NBFCs like LTF have a crucial role to play in this mission. LTF is actively involved in helping Indian women get a sustainable livelihood and become self-reliant through lending and CSR initiatives.
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.
“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,” said Dinanath Dubhashi, Managing Director & CEO of L&T Finance Holdings.
“Going forward, sustainability focused financing will increasingly play a critical role across borrowers and lenders in helping drive sustainable growth in the country,” he said.
LTF, a wholly owned subsidiary of L&T Finance Holdings (LTFH), is one of the leading Non-Banking Financial Company (NBFC) in the country. fiinews.com
