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L&T garners Rs 500 cr via ESG bonds

L&T garners Rs 500 cr via ESG bonds

Hans India25-06-2025
Mumbai: Larsen & Toubro 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 has successfully raisedRs500 crore through Non-Convertible Debentures (NCD) at a coupon rate of 6.35 per cent under the Securities and Exchange Board of India's (SEBI) newly introduced ESG and sustainability-linked bond framework.
The NCDs, having a three-year maturity period, will mature on June 19, 2028, and the interest would be paid on an annual basis. Issued in partnership with HSBC, who served as the sole lead arranger, this landmark transaction adheres strictly to SEBI's regulatory guidelines introduced on June 5, 2025, aimed at enhancing transparency and accountability among bond issuers. The framework mandates key disclosures, including sustainability objectives, external evaluations such as Second-Party Opinions (SPOs), and continuous post-issuance reporting, with clear Key Performance Indicators (KPIs) to measure ESG impact. R Shankar Raman, President, Whole-time Director & CFO, L&T said: 'We are proud to lead India's transition to sustainable finance through this pioneering ESG bond listing.
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