L&T Stated It May Launch More ESG Bonds After ₹500 Crore Debut Sees Strong Demand

Larsen & Toubro (L&T), India’s leading infrastructure firm, successfully raised ₹500 crore through its first ESG (Environmental, Social, and Governance) bond issue. This bond was issued under the Securities and Exchange Board of India’s (SEBI) new ESG debt framework and comes with a 3-year maturity and a coupon rate of 6.35%.

Bonds Priced Lower Than Market

The 6.35% interest rate on these bonds is lower than the 6.45%–6.50% currently seen on L&T’s similar bonds in the secondary market. This indicates strong investor demand. The bonds received a top AAA rating from Crisil, and buyers included banks and mutual funds.

SBI Mutual Fund as Anchor Investor

SBI Mutual Fund was the anchor investor and is said to have purchased bonds worth at least ₹75 crore. This early support likely helped boost overall investor confidence in the issue.

Company Open to More ESG Fundraising

Encouraged by the strong response and better pricing compared to traditional bonds, L&T stated it is open to raising more funds through ESG-linked instruments in the future. A company spokesperson said future issuances will depend on funding needs and market conditions.

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Larsen and Toubro Share Price Movement

As of June 19, 2025, Larsen and Toubro share price stood at ₹3,611.50, rising by ₹10.00 or 0.28% for the day. The stock opened at ₹3,607.00 and touched an intraday high of ₹3,643.00 and a low of ₹3,591.10. The company’s market capitalisation is ₹4.97 lakh crore, with a price-to-earnings (P/E) ratio of 33.05 and a dividend yield of 0.94%. The 52-week high for the stock is ₹3,963.50, while the 52-week low is ₹2,965.30.

Conclusion

L&T’s successful ₹500 crore ESG bond issue signals rising interest in sustainable investing. With favourable pricing and strong institutional demand, the company is considering tapping the ESG bond market again if needed.

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