Standard Chartered has provided the first green guarantee in Saudi Arabia for Larsen and Toubro (L&T), a prominent global company specializing in engineering, procurement, and construction projects.
The guarantee is specifically for L&T’s green hydrogen project at NEOM, with L&T Saudi Arabia overseeing local aspects and LTIFZE managing international supplies.
This initiative highlights the bank’s dedication to supporting sustainable endeavours and advancing green technologies not only in Saudi Arabia but also worldwide.
The project’s objective is to generate hydrogen from renewable energy sources, aligning with Saudi Arabia’s Vision 2030 and contributing to carbon emissions reduction.
Mr R. Shankar Raman, CFO of L&T Group, emphasized the significance of this announcement in their enduring collaboration with Standard Chartered and their shared commitment to sustainability and transformative cooperative efforts.
Mohammed Salama, Regional Head of Corporate, Commercial, and Institutional Banking at Standard Chartered MENA, expressed pleasure in issuing the first sustainable guarantee in Saudi Arabia, underscoring the importance of technological and financial innovation in supporting the global shift toward a low-carbon economy.
The sustainable guarantee provided by Standard Chartered ensures financial assistance for L&T’s development of wind and solar farms, crucial for green hydrogen generation while adhering to the bank’s environmental, social, and governance (ESG) standards.
The green hydrogen project is expected to make a significant contribution to carbon emissions reduction and foster sustainable development in Saudi Arabia, as well as aid the country’s ongoing efforts to decrease reliance on oil.
