L&T lists India's 1st ESG bonds on NSE; raises Rs 500 cr

New Delhi, Jun 23 (PTI) Engineering and construction conglomerate Larsen & Toubro (L&T) on Monday announced the listing of the country's first environmental, social and governance bonds on the NSE, raising Rs 500 crore through debentures.

In a filing to BSE, the company said it "has listed India's first ESG bonds on the National Stock Exchange (NSE), setting a precedent for a greener and more sustainable financial future in India".

The company said it has raised Rs 500 crore through non-convertible debentures (NCD) at a coupon rate of 6.35 per cent.

The debentures will mature over a period of three years, with annual interest payments. HSBC served as the sole lead arranger for the transaction.

The bonds, issued under Sebi's newly introduced ESG and sustainability-linked bond framework, were launched on June 5.

"This deal reinforces our commitment to driving L&T's ESG goals and supporting the larger energy transition objective," R Shankar Raman, president, whole-time director and CFO of the company, said.

As part of the sustainability-linked bond agreement, the company undertakes environmental commitments, targeting measurable reductions in freshwater withdrawal intensity and greenhouse gas emissions. These goals align with the company's broader vision of achieving water neutrality by 2035 and carbon neutrality by 2040.

"This successful issuance is a significant milestone in India's financial markets, illustrating growing investor appetite for ESG-compliant financial instruments and setting a benchmark for future sustainable financing ventures," it said. PTI SID SHW