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L&T ESG Bonds on NSE: India’s First Under SEBI Framework

25 June 20251 min read
BANKING & FINANCEL&T ESG Bonds onNSE: India’s FirstUnder SEBIFramework25 June 2025safalsetu.com

Why in the news

L&T listed the first ESG bonds on NSE under SEBI’s June 2025 framework.

Key facts

  • Proceeds are tied to environmental KPIs: lower freshwater withdrawal and fewer greenhouse gas emissions.
  • Goals: water neutral by 2035, carbon neutral by 2040.

SEBI framework needs

  • Clear ESG-linked objectives.
  • Third-party evaluation such as Second-Party Opinions.
  • Annual impact reports against KPIs, with better disclosures.

Definitions

  • NCDs: debt that cannot convert into shares, used for long-term funds.
  • ESG bonds: debt funding projects with environmental, social or governance benefits.

Test yourself

1. Which company listed India's first ESG bonds on the NSE under SEBI's new framework?

L&T listed the first ESG bonds on NSE.

2. By which year does Larsen & Toubro aim to be carbon neutral, per the ESG bond notes?

L&T targets carbon neutral by 2040 and water neutral by 2035.

3. What type of review does SEBI's ESG bond framework require, such as Second-Party Opinions?

The framework mandates third-party evaluation.