Larsen & Toubro (L&T) has listed India’s first ESG bonds on the National Stock Exchange (NSE). The company stated that it successfully raised ₹500 crore through non-convertible debentures (NCD) at a coupon rate of 6.35 per cent under the Securities and Exchange Board of India’s (SEBI) newly introduced ESG and sustainability-linked bond framework.

The NCDs with a three-year maturity period will mature on June 19, 2028, and the interest will be paid on an annual basis. The company stated that with a partnership with HSBC, the transaction adheres strictly to SEBI’s regulatory guidelines introduced on June 5, 2025, aimed at enhancing transparency and accountability among bond issuers.

“We are proud to lead India’s transition to sustainable finance through this pioneering ESG bond listing. This initiative underlines our dedication to long-term sustainable development and positions us at the forefront of responsible corporate governance and environmental stewardship. This deal reinforces our commitment to driving L&T’s ESG goals and supporting the larger energy transition objective,” said R Shankar Raman, President, Whole-time Director & CFO, L&T.

The framework mandates key disclosures, including sustainability objectives, external evaluations such as second-party opinions (SPOs), and continuous post-issuance reporting, with clear key performance indicators (KPIs) to measure ESG impact.

“As part of the sustainability-linked bond agreement, L&T undertakes ambitious environmental commitments, targeting measurable reductions in freshwater withdrawal intensity and greenhouse gas emissions. These goals align with the company’s broader vision of achieving water neutrality by 2035 and carbon neutrality by 2040, supporting India’s national agenda for net-zero and climate-resilient growth,” the company mentioned in a statement.

Published on June 23, 2025