06-06-2025
L&T issues Rs 500 crore ESG bonds under SEBI's new framework
Larsen & Toubro (L&T) has become the first Indian corporate to issue an ESG bond under the Securities and Exchange Board of India's (SEBI) newly introduced ESG and sustainability-linked bond framework. The ₹500 crore issuance marks a significant milestone in India's sustainable finance journey, with HSBC acting as the sole lead arranger.
'We take pride in leading the transition to sustainable finance under SEBI's new ESG framework,' said a senior spokesperson from L&T. 'This bond issuance reinforces our steadfast commitment to sustainable development and responsible business practices while aligning our finances with environmental targets.'
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The SEBI framework, announced on June 5, is aimed at enhancing transparency, accountability, and alignment with international ESG standards. It requires issuers to disclose sustainability goals, obtain external assessments such as Second-Party Opinions (SPOs), and provide post-issuance reporting. Clear Key Performance Indicators (KPIs) and measurable targets are also mandated to track ESG outcomes.
As part of the bond deal, L&T has committed to reducing the intensity of fresh water withdrawal and greenhouse gas emissions—steps aligned with its broader goals of achieving water neutrality by 2035 and carbon neutrality by 2040.
'We are pleased to partner with L&T on the first INR Sustainability Linked Bond under SEBI's guidelines, reinforcing our commitment to supporting the Clean Energy Transition in India. We look forward to partnering with corporates across sectors looking to navigate the paths toward their sustainability goals,' said HSBC India.
