Larsen & Toubro (L&T), an infrastructure and technology conglomerate, on Monday announced that it has listed India’s first Environmental, Social, and Governance (ESG) bonds on the National Stock Exchange (NSE), setting a precedent for a greener and more sustainable financial future in India.
In an official statement, the company said that it has successfully raised ₹500 crore through Non-Convertible Debentures (NCDs) at a competitive coupon rate of 6.35 per cent. This issuance falls under the Securities and Exchange Board of India’s (SEBI) newly introduced ESG and sustainability linked bond framework.
“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 of L&T.
As part of the sustainability-linked bond agreement, L&T has undertaken ambitious environmental commitments, including measurable reductions in freshwater withdrawal intensity and greenhouse gas emissions.
These targets are integral to the company’s broader vision of achieving water neutrality by 2035 and carbon neutrality by 2040, directly contributing to India’s national agenda for Net-Zero and climate-resilient growth.
The NCDs, with a three-year maturity period, are set to mature on June 19, 2028, with interest payments made annually. The transaction was issued in partnership with HSBC, which served as the sole lead arranger. It adheres strictly to SEBI’s comprehensive regulatory guidelines, introduced on June 5, 2025, aimed at enhancing transparency and accountability among bond issuers.
SEBI’s framework mandates crucial disclosures, including clear sustainability objectives, external evaluations such as Second-Party Opinions (SPOs), and continuous post-issuance reporting with well-defined Key Performance Indicators (KPIs) to measure ESG impact.