Larsen & Toubro (L&T) has raised Rs 5 billion through the issuance of India’s first environmental, social and governance (ESG) bonds.
The funds were mobilised through non-convertible debentures at a coupon rate of 6.35 per cent with a three-year maturity period. The bonds were listed on the National Stock Exchange (NSE), following the Securities and Exchange Board of India’s newly introduced ESG and sustainability-linked bond framework. The issuance was carried out in partnership with HSBC, which acted as the sole lead arranger. Under the bond agreement, L&T has committed to ambitious environmental targets, including reductions in freshwater withdrawal intensity and greenhouse gas emissions. These align with its broader goals of achieving water neutrality by 2035 and carbon neutrality by 2040.