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Key Points

Larsen & Toubro has made history by launching India's inaugural ESG bond, marking a significant milestone in sustainable corporate financing. The Rs 500 crore deal, arranged by HSBC, complies with SEBI's new sustainability-linked bond framework. By targeting water and carbon neutrality, L&T demonstrates a strong commitment to environmental goals. This groundbreaking transaction signals a transformative approach to corporate investment and climate responsibility.

Key Points: L&T HSBC Launch India's First Listed ESG Corporate Bond

  • L&T commits to water and carbon neutrality by 2035-2040
  • First Indian corporate ESG bond under SEBI framework
  • Rs 500 crore sustainable finance initiative
  • Targets reducing greenhouse gas and water consumption
2 min read

L&T announces India's first Listed ESG Bond deal in partnership with HSBC

L&T pioneers India's first ESG bond under SEBI's new framework, partnering with HSBC to advance sustainable finance goals

"We take pride in leading the transition to sustainable finance - L&T Spokesperson"

Mumbai, June 06,

Larsen & Toubro (L&T) has announced a Rs 500 crore ESG bond issuance deal, becoming the first Indian corporate to do so under the Securities and Exchange Board of India's (SEBI) newly introduced ESG and sustainability-linked bond framework. HSBC is acting as the sole lead arranger in this transaction.

Mumbai (Maharashtra) [India], June 06, (ANI): Larsen & Toubro (L&T) has announced a Rs 500 crore ESG bond issuance deal, becoming the first Indian corporate to do so under the Securities and Exchange Board of India's (SEBI) newly introduced ESG and sustainability-linked bond framework. HSBC is acting as the sole lead arranger in this transaction.

The issuance is compliant with SEBI's regulatory framework announced on Thursday (5 June), which is designed to promote transparency, accountability, and alignment with international ESG standards. The framework outlines key requirements for issuers, including the disclosure of sustainability objectives, mandatory external assessments such as Second-Party Opinions (SPOs), and post-issuance reporting. It also mandates clear Key Performance Indicators (KPIs) and targets to measure ESG outcomes, crucial steps in supporting India's Net-Zero and climate-resilient growth agenda.

As part of the ESG Bond deal, L&T is committed to environmental targets, including a decrease in the intensity of freshwater withdrawal and emissions of greenhouse gases. These Initiatives are in line with the company's long-term sustainability goals of achieving water neutrality by 2035 and carbon neutrality by 2040.

"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 whilealigning our finances with environmental targets," the spokesperson added.

"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.

Larsen & Toubro is a USD 30 billion Indian multinational engaged in EPC Projects, Hi-Tech Manufacturing, and Services, operating across multiple geographies.

- ANI

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Reader Comments

R
Rajesh K.
This is a fantastic initiative by L&T! 🇮🇳 Finally seeing Indian corporates take serious steps towards sustainability. The water neutrality and carbon neutrality targets are ambitious but achievable. Hope more companies follow suit!
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Priya M.
While I appreciate the ESG efforts, I hope this isn't just greenwashing. SEBI must ensure strict monitoring of these KPIs. Many companies make big claims but fail to deliver on sustainability promises. The mandatory external assessments are a good step though.
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Amit S.
Great move! This shows India's corporate sector is maturing. The partnership with HSBC gives it international credibility too. Wondering if retail investors will get a chance to participate in such bonds in future? Would love to invest in green initiatives.
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Sanjana R.
L&T setting an example for other Indian companies 👏 The water neutrality target is especially important given our country's water crisis. Hope they share their best practices with smaller firms too. Sustainability shouldn't just be for big corporates!
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Vikram J.
₹500 crore is a good start but we need much bigger investments in green tech. China is way ahead in this space. Hope this ESG framework attracts more foreign investment into India's sustainability projects. Jai Hind!
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Neha P.
As someone working in finance, I'm curious about the bond terms. What's the coupon rate? How are they planning to measure the ESG outcomes? More transparency would help build investor confidence in these new instruments.

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