L&T Issues India’s First Listed ESG Bond Under SEBI’s New Framework

Larsen & Toubro (L&T) has become the first Indian company to issue a listed ESG (Environmental, Social, and Governance) bond under SEBI’s newly launched ESG and sustainability-linked bond framework. The ₹500 crore bond deal was arranged in partnership with HSBC, which acted as the sole lead arranger.

What Is the ESG Bond Framework?

The Securities and Exchange Board of India (SEBI) introduced this framework on June 5, 2025, to push for greater transparency and global alignment in ESG-linked investments. It requires companies to:

• Clearly define their sustainability goals.
• Undergo external assessments like Second-Party Opinions (SPOs).
• Disclose Key Performance Indicators (KPIs).
• Provide post-issuance reports on ESG progress.

L&T’s Green Commitment

Under the bond deal, L&T has committed to reducing freshwater usage and greenhouse gas emissions. These efforts support the company’s broader targets:

• Water neutrality by 2035
• Carbon neutrality by 2040

A senior L&T spokesperson said this move highlights their commitment to responsible business practices and sustainable development, aligning finance with environmental goals.

HSBC Supports the Transition

HSBC India expressed pride in supporting L&T with the first Sustainability-Linked Bond under SEBI’s guidelines. The bank reaffirmed its dedication to help Indian corporates meet clean energy and ESG targets.

About Larsen & Toubro

L&T is a $30 billion multinational company headquartered in India, known for its presence in engineering, procurement, construction (EPC), manufacturing, and services. With a strong focus on quality and customer satisfaction, it has remained a leader in its key sectors for over 80 years.

Read More: Why Bajaj Finance, SBI Card, and RBL Bank Shares Soared Up to 4%?

Larsen and Toubro share Price 

On June 6, 2025, Larsen and Toubro share price closed at ₹3,653.00, up by ₹10.40 or 0.29%. During the day, the stock opened at ₹3,645.00, touched a high of ₹3,667.00 and a low of ₹3,623.00. Its 52-week high stands at ₹3,963.50, while the 52-week low is ₹2,965.30.

Conclusion

L&T’s ₹500 crore ESG bond under SEBI’s new rules marks a milestone in India’s green finance journey. It not only sets the stage for more ESG investments but also shows how major corporates can align business goals with sustainability targets for a better future.

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