L&T Leads the Way with Pioneering ESG Bond Issuance

Larsen & Toubro (L&T) has announced a groundbreaking Rs 500 crore ESG bond issuance, marking the first under SEBI's new ESG framework. The funds target environmental, social, and governance goals, with HSBC as lead arranger. L&T aims for water neutrality by 2035 and carbon neutrality by 2040.

Larsen & Toubro (L&T) has embarked on a new venture, becoming the first Indian corporate to issue a Rs 500 crore ESG bond, in line with the Securities and Exchange Board of India's (SEBI) new sustainability framework.

These ESG bonds, a type of debt security, are aimed at funding L&T's environmental, social, and governance initiatives, with HSBC acting as the sole lead arranger. The initiative aligns with L&T's sustainability goals, including achieving water neutrality by 2035 and carbon neutrality by 2040.

The issuance adheres to SEBI's recently announced regulatory framework designed to enhance transparency and accountability. The framework mandates issuers to disclose sustainability objectives, undergo external assessments, and report post-issuance, thereby supporting India's net-zero and climate-resilient growth objectives.

(With inputs from agencies.)