Standard Chartered has issued the Kingdom's first-ever green guarantee for Larsen and Toubro (L&T), a global leader in engineering, procurement, and construction (EPC) projects. The green guarantee is issued for the green hydrogen project development at NEOM where L&T Saudi Arabia will work on design, local supplies, construction, and commissioning of the renewable and grid packages while the international supplies will be handled by LTIFZE, both subsidiaries of L&T.
The launch reflects the Bank's commitment to supporting sustainable projects and promoting the development of green technologies in Saudi Arabia and beyond. The green hydrogen project aims to produce hydrogen from renewable energy sources and will support the reduction of carbon emissions, in line with Saudi Arabia's Vision 2030.
Mr. R. Shankar Raman, CFO L&T Group said: “The announcement marks yet another significant milestone in L&T’s long standing collaborative partnership with Standard Chartered. It further demonstrates our commitment to sustainability, the advancement of sustainable finance and transformative power of cooperative efforts. Through such initiatives, we emphasise the power of partnerships in fostering sustainable development and practises. We remain focused on continuing to grow our green business in Saudi Arabia in partnership with and continued support from Standard Chartered as one of our key relationship banks.”
Commenting on the announcement, Mohammad Salama, Regional Head of Corporate, Commercial, and Institutional Banking, MENA, Standard Chartered, said: "We are pleased to issue the first sustainable guarantee in the Kingdom of Saudi Arabia which supports the growth and development of green hydrogen. At Standard Chartered, we know that technological and financial innovation is critical in supporting the global transition towards a low-carbon economy."
The sustainable guarantee issued by Standard Chartered ensured that L&T received the necessary financial support for the development of the wind and solar farms to support the green hydrogen generation in this project, while meeting the bank’s environmental, social, and governance (ESG) standards.
The green hydrogen project is expected to play a significant role in reducing carbon emissions and promoting sustainable development in Saudi Arabia. It will also contribute to the country's ongoing efforts to reduce its dependence on oil.