L&T Announces India's First Listed ESG Bond Deal of Rs 500 Crore in Partnership with HSBC
Larsen & Toubro Ltd (L&T) has announced a Rs 500 crore ESG bond issuance deal, becoming the first Indian corporate to do so under the Securities and Exchange Board of India’s (SEBI) newly introduced ESG and sustainability-linked bond framework. HSBC is acting as the sole lead arranger in this transaction. The issuance is compliant with SEBI’s regulatory framework which outlines key requirements for issuers, including the disclosure of sustainability objectives, mandatory external assessments, and post-issuance reporting. L&T is committed to environmental targets, including a decrease in intensity of fresh water withdrawal and emissions of greenhouse gases, aligning with the company’s long-term sustainability goals of achieving water neutrality by 2035 and carbon neutrality by 2040.
Key Highlights
- L&T announced India's first Listed ESG Bond Deal of Rs 500 crore under SEBI's new ESG and sustainability-linked bond framework.
- HSBC is the sole lead arranger for this transaction.
- L&T is committed to environmental targets such as decreasing intensity of fresh water withdrawal and emissions of greenhouse gases.
- L&T's long-term sustainability goals include achieving water neutrality by 2035 and carbon neutrality by 2040.
- SEBI's regulatory framework for ESG bonds includes disclosure of sustainability objectives, mandatory external assessments, and post-issuance reporting.