L&T Partners With HSBC: Launches India’s First Listed ESG Bond Deal Worth ₹500 Crore
By Ankur Chandra | Updated at: Jun 7, 2025 12:11 AM IST
Larsen & Toubro Ltd (BSE: 500510, NSE: LT) has announced an issuance deal to list 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 deal, which makes L&T the first Indian corporation to issue such a bond, is being arranged solely by HSBC India.
This issuance aligns with SEBI’s enhanced disclosure and compliance requirements, which include:
- Disclosure of sustainability objectives
- Mandatory Second-Party Opinions (SPOs)
- Clearly defined Key Performance Indicators (KPIs) and targets
- Post-issuance impact reporting
L&T has pledged specific environmental targets as part of the deal, notably:
- Reduction in fresh water withdrawal intensity
- Lowering greenhouse gas emissions
These initiatives support L&T’s long-term goals of achieving water neutrality by 2035 and carbon neutrality by 2040.
Key Highlights Of The ESG Bond
| Particulars | Details |
|---|---|
| Issuer | Larsen & Toubro Limited |
| Bond Type | ESG (Environmental, Social, Governance) |
| Listed/Unlisted | Listed |
| Deal Size | ₹500 crore |
| Lead Arranger | HSBC India |
| Framework Compliance | SEBI ESG Bond Framework (June 2025) |
| Use of Proceeds | Aligned with L&T’s environmental targets |
How Did the Investors React to the News?
The shares of L&T closed at ₹3,656.30, up by 0.38% or ₹13.70 on the June 6th market trading session.
What Did The Management Say?
“We take pride in leading the transition to sustainable finance under SEBI’s new ESG framework. This bond issuance reinforces our steadfast commitment to sustainable development and responsible business practices while aligning our finances with environmental targets,” said a senior L&T spokesperson.
HSBC India 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.”
Company Profile
Larsen & Toubro is a USD 30 billion Indian multinational engaged in Engineering, Procurement, and Construction (EPC) projects, Hi-Tech manufacturing, and services. With a legacy of over eight decades, the company is renowned for its quality-first approach and leadership across core business sectors.
What’s Ahead For L&T?
L&T’s debut ESG bond issuance marks a new chapter in its sustainability journey. With India moving towards stricter ESG compliance and investor preferences tilting towards responsible companies, this deal could provide L&T with both financial and reputational benefits. The funds raised will help the company directly meet its environmental targets.
REF: https://nsearchives.nseindia.com/corporate/PAM_06062025143935_PressRelease06062025.pdf
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