L&T Pioneers India's First ESG Bonds on NSE

Larsen & Toubro (L&T) has launched India's inaugural ESG bonds on the NSE, raising Rs 500 crore. This marks a key development in sustainable finance, adhering to SEBI's framework for transparency and accountability. The ESG initiative emphasizes L&T's commitment to responsible governance and environmental stewardship.

Larsen & Toubro (L&T), a leading infra and technology company, has made history by listing India's first ESG bonds on the National Stock Exchange (NSE). This groundbreaking move sets a promising precedent for a greener financial future in India. L&T announced that it had successfully raised Rs 500 crore through Non-Convertible Debentures (NCD) at a coupon rate of 6.35 percent, aligning with the Securities and Exchange Board of India's (SEBI) newly introduced ESG and sustainability-linked bond framework.

The issued NCDs have a three-year maturity and will mature on June 19, 2028, with annual interest payments. HSBC played a crucial role as the sole lead arranger for this significant financial transaction, adhering to SEBI’s guidelines introduced on June 5, 2025, aimed at enhancing transparency and accountability among bond issuers, L&T stated.

The framework necessitates vital disclosures, such as sustainability objectives and external evaluations, along with ongoing post-issuance reporting. R Shankar Raman, President, Whole-time Director, and CFO of L&T, expressed pride in leading India's shift toward sustainable finance with this ESG bond listing, underscoring L&T's commitment to long-term sustainable development and responsible governance. The successful issuance marks a milestone in India's financial markets, highlighting a growing investor appetite for ESG-compliant instruments.