L&T raises Rs 5 billion through India’s first ESG bonds on NSE

Larsen & Toubro (L&T) has raised Rs 5 billion through the issuance of India’s first environmental, social and governance (ESG) bonds. The funds were mobilised through non-convertible debentures at a coupon rate of 6.35 per cent with a three-year maturity period. The bonds were listed on the NSE, following SEBI’s newly introduced ESG and sustainability-linked bond framework. The issuance was carried out in partnership with HSBC, which acted as the sole lead arranger. Under the bond agreement, L&T has committed to ambitious environmental targets, including reductions in freshwater withdrawal intensity and greenhouse gas emissions.