L&T Lists India’s First ESG Bonds Worth ₹500 Crore on NSE; Sets Benchmark for Sustainable Financing

Mumbai, June 24, 2025 — Larsen & Toubro Limited (NSE: LT, BSE: 500510) has made a landmark move by listing India’s first ESG (Environmental, Social and Governance) bonds on the National Stock Exchange (NSE), raising ₹500 crore through Non-Convertible Debentures (NCDs).

The bonds are issued under the Securities and Exchange Board of India’s (SEBI) newly introduced (June 5, 2025) ESG and sustainability-linked bond framework in partnership with HSBC, the sole lead arranger. They carry an annual coupon rate of 6.35% with a three-year maturity period (June 19, 2028) and annual interest payments.

In a positive start to the trading day, Larsen & Toubro Limited opened higher and climbed to an intraday high of ₹3,684.00. As of 11:53 AM on June 24, 2025, the stock is trading at ₹3,666.10, reflecting a steady upward move of 2.30% from its previous close.

Key Bond Details

Regulatory Context

The issuance aligns with the Securities and Exchange Board of India’s (SEBI) ESG and sustainability-linked bond framework, introduced on June 5, 2025. This framework mandates:

• Disclosure of sustainability objectives

• External evaluations like Second-Party Opinions (SPOs)

• Continuous post-issuance reporting

• Use of Key Performance Indicators (KPIs) to measure ESG outcomes

Management Commentary

Highlighting the company’s commitment to long-term sustainable development  to Mr. R. Shankar Raman, President, Whole-time Director & CFO of L&T, remarked:

“We are proud to lead India’s transition to sustainable finance through this pioneering ESG bond listing. This initiative underlines our dedication to long-term sustainable development and positions us at the forefront of responsible corporate governance and environmental stewardship.”

Strategic ESG Commitments

As part of the bond agreement, L&T has pledged:

• Reduction in freshwater withdrawal intensity

• Reduction in greenhouse gas emissions

These align with the company’s long-term ESG goals:

• Water neutrality by 2035

• Carbon neutrality by 2040

These ambitions support India’s national Net-Zero goals and broader climate resilience targets.

Market Outlook

Following the landmark ESG bond listing, L&T’s stock gained steadily. The move signals strong investor confidence in the company’s sustainable financing strategy. Further, the move positions L&T as a pioneer in responsible capital raising under SEBI’s new ESG framework.

It also reinforces its ESG leadership and may attract long-term institutional interest. With clear sustainability targets and growing demand for green finance, L&T is well-placed to benefit from both capital market goodwill and enhanced corporate reputation.

About Larsen & Toubro Limited

Larsen & Toubro (L&T) is a publicly listed Indian multinational engaged in engineering, construction, manufacturing, and financial services with over eight decades of strong, customer-focused operations. The company is listed on both the NSE and BSE.

REF: https://nsearchives.nseindia.com/corporate/PAM_23062025183219_PressRelease23062025.pdf

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