Larsen & Toubro Limited has informed the Exchange regarding a press release dated Jun 23, 2025, titled "Larsen & Toubro lists India s First ESG Bonds worth ₹ 500 crore on NSE".
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Larsen & Toubro has listed India's first ESG bonds on the NSE, raising ₹500 crore through Non-Convertible Debentures at a coupon rate of 6.35% with a three-year maturity (maturing on June 19, 2028). The issuance was done under SEBI's newly introduced ESG and sustainability-linked bond framework (effective June 5, 2025), with HSBC as the sole lead arranger. The bonds are linked to measurable sustainability targets, including reductions in freshwater withdrawal intensity and greenhouse gas emissions, aligning with L&T's goals of water neutrality by 2035 and carbon neutrality by 2040. Interest will be paid annually, and the framework mandates external evaluations, Second-Party Opinions, and continuous post-issuance reporting on ESG KPIs.
This is a landmark issuance that positions L&T as a pioneer in India's sustainable finance market, potentially attracting ESG-focused investors and lowering future borrowing costs. While the ₹500 crore size is modest relative to L&T's overall scale, the positive brand and governance signal could support long-term investor confidence and set a benchmark for corporate ESG issuances in India.