L&T raises INR 500 crore via ESG-compliant debentures

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Last Updated : 1st Jan, 1970

Synopsis

Larsen & Toubro (L&T) has mobilised INR 500 crore through the issuance of non-convertible debentures (NCDs) tied to environmental, social and governance (ESG) benchmarks. The NCDs, valued at INR 1 lakh each and carrying an interest rate of 6.35%, will mature in 2028 and bear annual interest. The issuance is part of SEBI�s ESG Debt Securities Framework and is expected to be listed on the NSE. Meanwhile, L&T recorded a 25% increase in consolidated profit after tax for the March quarter, supported by higher operational revenues and an exceptional gain.

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Infrastructure giant Larsen & Toubro (L&T) recently announced that it had successfully raised INR 500 crore through the issuance of non-convertible debentures (NCDs), further enhancing its financial position while aligning with sustainability principles. In a filing to the Bombay Stock Exchange (BSE), the company revealed that it had allotted 50,000 unsecured, redeemable, listed, and rated NCDs with a face value of INR 1 lakh each, carrying an annual coupon rate of 6.35%.

The proceeds were raised under the Securities and Exchange Board of India�s (SEBI) regulatory framework for Environment, Social and Governance (ESG) Debt Securities, a category that supports sustainable business practices without being restricted to green bonds alone. L&T clarified that these debentures are linked to clearly defined sustainability performance targets, underscoring its long-term focus on responsible growth and transparent corporate governance.

These instruments are expected to be listed on the National Stock Exchange of India (NSE), providing liquidity to investors and greater visibility to the company�s ESG commitments. The NCDs have a maturity period of three years, with the final redemption scheduled for mid-2028. Interest on these securities will be paid annually.

The move reflects a broader trend among large corporates turning to sustainability-linked debt instruments as regulators and investors increasingly emphasise environmental accountability. For L&T, which has a broad portfolio spanning engineering, construction, and manufacturing, the issue marks another step toward integrating ESG norms within its financial and operational structures.

On the financial front, the company reported robust earnings for the fourth quarter ended 31 March 2025. Consolidated profit after tax (PAT) surged by 25% to INR 5,497 crore, compared to INR 4,396 crore in the corresponding period last year. The jump in profit was attributed to improved revenue realisations and a one-time exceptional gain, signalling operational efficiency and strategic execution.

Revenue from operations also experienced significant growth, climbing to INR 74,392.28 crore from INR 67,078.68 crore year-on-year. This rise was supported by continued momentum in the infrastructure segment, increased order inflows, and progress across domestic and international projects.

Source - PTI

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5th Jun, 2025

L&T raises INR 500 crore via ESG-compliant debentures

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