First firm to implement SEBI's new ESG guideline for listed green bonds
Larsen & Toubro took a giant step in ESG finance by issuing a ₹500 crore ESG bond—the country’s maiden ESG bond, listed among the Securities and Exchange Board of India’s new guidelines for ESG and sustainability-linked bonds, launched on June 5, 2025. HSBC India was the sole lead arranger of the deal.
With this linkage, L&T associates its fundraising with measurable environmental effects, including lower greenhouse gas emissions and independence from freshwater resources. The company has made a pledge to become water neutral by 2035 and carbon neutral by 2040.
SEBI’s new regulations require issuers to define unambiguous ESG metrics, submit themselves to third-party scrutiny, and offer transparent post-issue disclosure. This action not only strengthens India’s net-zero goal but also positions L&T at the world’s leading edge of green corporate finance.
