In a landmark move for India’s sustainable finance landscape, engineering and infrastructure giant Larsen & Toubro (L&T) has successfully listed the country’s first ESG (Environmental, Social, and Governance) bonds on the National Stock Exchange (NSE), raising ₹500 crore through non-convertible debentures (NCDs).
A Milestone in Green Financing
The bonds were issued under the Securities and Exchange Board of India’s (SEBI) newly introduced ESG and sustainability-linked bond framework, launched on June 5, 2025. These NCDs carry a coupon rate of 6.35%, with a three-year maturity and annual interest payments. HSBC served as the sole lead arranger for the transaction.
L&T’s Sustainability Commitments
L&T’s ESG bonds are directly aligned with its long-term environmental goals, including:
- Achieving water neutrality by 2035
- Achieving carbon neutrality by 2040
- Reducing freshwater withdrawal intensity
- Lowering greenhouse gas emissions
These targets are backed by clear Key Performance Indicators (KPIs) and external evaluations, such as Second-Party Opinions (SPOs), as mandated by SEBI’s framework.
Industry Impact and Investor Confidence
- Shankar Raman, President, Whole-time Director & CFO of L&T, stated that the issuance reinforces the company’s commitment to responsible governance and environmental stewardship, while also supporting India’s net-zero ambitions.
The successful listing is expected to boost investor confidence in ESG-compliant instruments and set a benchmark for future green financing ventures in India’s corporate sector.
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