Larsen & Toubro (L&T) has set a benchmark for sustainable finance in India by listing the country’s first environmental, social and governance (ESG) bonds on the National Stock Exchange. The conglomerate secured Rs 5 billion through three-year non-convertible debentures (NCDs) priced at a 6.35 per cent annual coupon, issued under the Securities and Exchange Board of India’s newly introduced ESG and sustainability-linked bond framework dated 5 June 2025. Arranged solely by HSBC, the notes will mature on 19 June 2028 and require extensive pre- and post-issuance disclosures, including second-party opinions and defined key performance indicators to track ESG impact.

President and Chief Financial Officer R. Shankar Raman said the listing demonstrates L&T’s commitment to responsible corporate governance and reinforces its broader energy-transition goals. Under the bond covenants, L&T has pledged measurable reductions in freshwater-withdrawal intensity and greenhouse-gas emissions, supporting its aims of achieving water neutrality by 2035 and carbon neutrality by 2040. The oversubscribed transaction highlights rising investor appetite for ESG-aligned instruments and is expected to serve as a model for future sustainable-financing ventures in India.