Engineering and construction giant Larsen & Toubro (L&T) has become the first Indian corporate to issue an ESG bond under the Securities and Exchange Board of India’s (SEBI) newly introduced ESG and sustainability-linked bond framework. The Rs 500 crore issuance marks a significant milestone in India’s sustainable finance landscape. HSBC is serving as the sole lead arranger for the transaction.
The bond adheres to SEBI’s regulatory framework, unveiled on 5 June, which seeks to enhance transparency, accountability, and alignment with international ESG standards. The guidelines mandate public disclosure of sustainability objectives, the use of third-party evaluations such as Second-Party Opinions (SPOs), post-issuance impact reporting, and the establishment of Key Performance Indicators (KPIs) and environmental targets.
In line with the framework, L&T has committed to measurable environmental targets, including reducing greenhouse gas emissions and lowering the intensity of freshwater withdrawal. These goals support the company’s broader ambition to become water neutral by 2035 and carbon neutral by 2040.
“We take pride in leading the transition to sustainable finance under SEBI’s new ESG framework,” an L&T spokesperson said. “This bond issuance reinforces our commitment to responsible business practices and sustainable development.”
HSBC India welcomed the partnership, emphasising its role in supporting India’s energy transition. “We are pleased to partner with L&T on the first INR Sustainability-Linked Bond under SEBI’s guidelines. This reinforces our commitment to supporting the clean energy transition in India,” the bank stated.
L&T, a $30 billion multinational, operates across engineering, procurement, and construction (EPC), hi-tech manufacturing, and services sectors in global markets.
