L&T Launches India's First ESG Bonds on NSE, Raising ₹500 Crore

Larsen & Toubro (L&T) has listed India’s first ESG (Environmental, Social and Governance) bonds on the National Stock Exchange. The company raised ₹500 crore through non-convertible debentures (NCDs) at a coupon rate of 6.35%. The bonds have a maturity period of 3 years, with annual interest payments. They will mature on June 19, 2028.

Issued Under SEBI’s New ESG Framework

The bonds have been issued under the Securities and Exchange Board of India’s (SEBI) ESG and sustainability-linked bond framework, which was introduced on June 5, 2025. This framework requires companies to provide detailed sustainability objectives, obtain external evaluations such as Second-Party Opinions (SPOs), and conduct ongoing reporting with defined Key Performance Indicators (KPIs) related to ESG outcomes.

HSBC as Sole Lead Arranger

HSBC acted as the sole lead arranger for the bond issuance. The transaction was conducted in compliance with the latest SEBI guidelines, which are intended to improve transparency and reporting standards for ESG-linked financial instruments in India.

Targets Linked to the Bond Issue

L&T has set environmental performance targets as part of this bond issuance. These include reducing freshwater withdrawal intensity and greenhouse gas emissions. The company has stated that it aims to become water-neutral by 2035 and carbon-neutral by 2040.

This ESG bond listing is the first to be carried out in the Indian market under the updated SEBI regulations. It comes at a time when there is increased regulatory and institutional focus on sustainability disclosures. 

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Larsen & Toubro Share Price Performance

As of 09:35 AM on June 24, 2025, Larsen & Toubro (L&T) share price was trading at ₹3,657.70, a 2.06% increase, with a 1.67% decline over the past 6 months and a 1.34% increase over the past year.

Conclusion

L&T’s listing of ESG bonds is the first implementation of SEBI’s new sustainability framework. The issuance includes measurable environmental targets and formal reporting obligations, and may serve as a reference point for future bond listings under the same guidelines.

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