L\&T Launches India’s First Listed ESG Bond Deal Under SEBI Framework

Mumbai, June 6, 2025 – Engineering giant Larsen & Toubro (L\&T) has taken a major step toward sustainable financing by issuing India’s first listed ESG bond under SEBI’s newly introduced ESG bond framework. The ₹500 crore issuance was done in collaboration with HSBC, which acted as the sole lead arranger. This landmark move aligns L\&T with SEBI’s updated sustainability-linked bond regulations that demand greater transparency and measurable environmental goals. Under this framework, companies must disclose their sustainability targets, undergo third-party assessments, and report performance based on specific Key Performance Indicators (KPIs). L\&T has committed to reduce freshwater withdrawal and greenhouse gas emissions as part of this bond’s environmental impact roadmap. The company aims to become water neutral by 2035 and carbon neutral by 2040, reinforcing its long-term sustainability ambitions. A spokesperson from L\&T called the issuance a reflection of the company’s leadership in responsible business practices, while HSBC India highlighted the significance of such initiatives in driving India’s clean energy transition. This development marks a strong start to India’s regulated ESG bond market, opening the door for other corporates to integrate climate goals into their financing plans.