New Delhi: Larsen & Toubro (L&T), India’s premier infrastructure and technology conglomerate, has listed India’s first ESG bonds on the National Stock Exchange (NSE), setting a precedent for a greener and more sustainable financial future in India. The company has successfully raised Rs 500 crore through Non-Convertible Debentures at a coupon rate of 6.35% under the SEBI’s newly introduced ESG and sustainability-linked bond framework.
The NCDs, having a three-year maturity period, will mature on June 19, 2028, and the interest would be paid on an annual basis. Issued in partnership with HSBC, who served as the sole lead arranger, this landmark transaction adheres strictly to SEBI’s regulatory guidelines introduced on June 5, 2025, aimed at enhancing transparency and accountability among bond issuers.
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.
Commenting on the listing, R Shankar Raman, President, Whole-time Director & CFO, L&T said, “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.”