Larsen & Toubro (L&T) has made history by becoming the first Indian corporate to issue a listed ESG bond under the Securities and Exchange Board of India’s (SEBI) newly introduced sustainability-linked bond framework. The ₹500 crore issuance, arranged by HSBC, aims to catalyze sustainable finance and climate action.
🔴 Key Highlights:
- First-ever ESG bond issuance under SEBI’s new framework, setting a precedent for corporate sustainability financing.
- Funds will be used for environmental initiatives, including reducing freshwater withdrawal intensity and greenhouse gas emissions.
- L&T’s long-term sustainability goals include achieving water neutrality by 2035 and carbon neutrality by 2040.
📢 Industry Leaders Speak:
- L&T Spokesperson: “We take pride in leading the transition to sustainable finance under SEBI’s new ESG framework. This bond issuance reinforces our commitment to responsible business practices.”
- HSBC India: “We are pleased to partner with L&T on the first INR Sustainability Linked Bond under SEBI’s guidelines, supporting India’s clean energy transition.”
⚠️ Strategic Impact:
- Boosts India’s ESG financing landscape, aligning with global sustainability standards.
- Encourages other corporates to adopt ESG-linked financial instruments, expanding the market for green investments.
👉 What do you think? Will this move accelerate India’s transition to sustainable finance? Drop your thoughts in the comments!
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