L&T Pioneers India's First ESG Bonds Listing

Larsen & Toubro, a leading engineering and construction conglomerate, announced a landmark achievement on Monday by listing India's first environmental, social, and governance (ESG) bonds on the National Stock Exchange (NSE). The company successfully raised Rs 500 crore through non-convertible debentures (NCD), issued at a 6.35% coupon rate, with a three-year maturity period.

According to a filing made to the Bombay Stock Exchange (BSE), this pioneering move sets a precedent for a sustainable financial future in India. R Shankar Raman, L&T's president, whole-time director, and CFO, emphasized the company's dedication to advancing its ESG goals and supporting the broader energy transition. The transaction, arranged by HSBC, aligns with the new ESG and sustainability-linked bond framework introduced by Sebi.

Under this framework, L&T has committed to significant environmental efforts, targeting measurable reductions in freshwater withdrawal intensity and greenhouse gas emissions. These objectives are in line with L&T's broader ambitions of achieving water neutrality by 2035 and carbon neutrality by 2040. The success of this issuance marks a significant milestone in India's financial markets, highlighting the growing investor interest in ESG-compliant financial instruments and setting a standard for future sustainable financing initiatives.

(With inputs from agencies.)