The NCDs carry a coupon rate of 6.35% and will mature over a period of three years, with annual interest payments. HSBC served as the sole lead arranger for the transaction.
The bonds were issued under the Securities and Exchange Board of India’s (SEBI) newly introduced ESG and sustainability-linked bond framework, launched on June 5, 2025.
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The framework mandates detailed disclosures including sustainability objectives, external evaluations such as Second-Party Opinions (SPOs), and ongoing post-issuance reporting with clear Key Performance Indicators (KPIs) to track ESG impact.
Commenting on the milestone, R. Shankar Raman, President, Whole-time Director and CFO at L&T, said the move reinforces the company’s long-term commitment to sustainability, responsible governance and environmental stewardship. He added that L&T’s ESG goals align with national net-zero targets.
As part of the sustainability-linked bond commitments, L&T aims to reduce its freshwater withdrawal intensity and greenhouse gas emissions, with the goal of achieving water neutrality by 2035 and carbon neutrality by 2040.
The move is expected to not only boost confidence in ESG-compliant instruments but also set a benchmark for similar green financing efforts in India’s corporate landscape.
Ahead of the announcement, shares of Larsen & Toubro Ltd closed 2.27% lower at ₹3,579 on the NSE.
