L&T To Raise Rs 500 Crore Via ESG Bonds, HSBC Sole Lead Arranger
As part of the ESG Bond deal, L&T is committed to environmental targets, including a decrease in intensity of freshwater withdrawal and emissions of greenhouse gases.
Larsen & Toubro Ltd. has announced a Rs 500-crore environmental, social and governance bond issuance deal, making L&T the first Indian corporate to do so under SEBI's newly introduced ESG and sustainability-linked bond framework.
HSBC is acting as the sole lead arranger in this transaction, according to an exchange filing on Friday. The issuance complies with SEBI's regulatory framework announced on June 5.
As part of the ESG Bond deal, L&T is committed to environmental targets, including a decrease in intensity of freshwater withdrawal and emissions of greenhouse gases. These initiatives are in line with the company’s long-term sustainability goals of achieving water neutrality by 2035 and carbon neutrality by 2040, according to the release.
"We take pride in leading the transition to sustainable finance under SEBI’s new ESG framework," said a senior spokesperson from L&T. This bond issuance reinforces our steadfast commitment to sustainable development and responsible business practices while aligning our finances with environmental targets, the company said.
The framework is designed to promote transparency, accountability, and alignment with international ESG standards. It outlines the key requirements for issuers, including the disclosure of sustainability objectives, mandatory external assessments such as second party opinions, and post-issuance reporting.
It also mandates clear key performance indicators or KPIs and targets to measure ESG outcomes. These steps support India's net-zero and climate-resilient growth agenda.
"We are pleased to partner with L&T on the first Indian Sustainability Linked Bond under SEBI's guidelines, reinforcing our commitment to supporting the Clean Energy Transition in India," HSBC India said. "We look forward to partnering with corporates across sectors looking to navigate the paths toward their sustainability goals."
