Latest news with #ESG-linked
Time of India
3 days ago
- Business
- Time of India
India's Larsen & Toubro may explore another ESG bond issue after debut attracts premium, spokesperson says
Indian infrastructure major Larsen & Toubro could raise funds through environmental, social and governance bonds again, after its first-ever issuance of the notes was sold at a premium, a company spokesperson said on Wednesday. In the debut bond sale under India's newly-introduced ESG debt securities framework, L&T on Wednesday raised 5 billion rupees ($58 million) through three-year notes at a coupon of 6.35%. This compares with 6.45%-6.50% secondary market yields on the company's near three-year bonds, according to merchant bankers. Bonds Corner Powered By India's Larsen & Toubro may explore another ESG bond issue after debut attracts premium, spokesperson says In the debut bond sale under India's newly-introduced ESG debt securities framework, L&T on Wednesday raised 5 billion rupees ($58 million) through three-year notes at a coupon of 6.35%. Indian bond yields marginally higher; focus on oil, debt supply Sebi eases norms for foreign investors who only buy government bonds Lending yields set to shrink in FY26 as banks play it safe Jiraaf launches India's first Bond Analyser to decode fixed-income investing Browse all Bonds News with "We remain open to raising more funds through ESG-linked issuances...," the spokesperson told Reuters. "Should the need arise, and if market conditions are conducive, we may consider the ESG debt market again." The notes, rated AAA by Crisil, saw banks and mutual funds as investors, the spokesperson said. Live Events SBI Mutual Fund was the anchor investor and bought at least 750 million rupees of the bonds, bankers said. The fund house did not reply to a Reuters email seeking comment. "We were able to achieve beneficial pricing on this ESG bond issuance compared to our plain vanilla bonds. The strong investor interest in credible ESG-labelled instruments helped us price the bond attractively," the L&T spokesperson said. The deal signals that credible ESG-labelled issuances can secure premium pricing purely on the strength of transparency and investor confidence, said Venkatakrishnan Srinivasan, founder and managing partner at debt advisory firm Rockfort Fincap. "Going ahead, this could open the gates for more corporates to access the ESG bond market, and issuers with strong sustainability credentials may benefit from favourable pricing." ETMarkets WhatsApp channel )
Economic Times
3 days ago
- Business
- Economic Times
India's Larsen & Toubro may explore another ESG bond issue after debut attracts premium, spokesperson says
Indian infrastructure major Larsen & Toubro could raise funds through environmental, social and governance bonds again, after its first-ever issuance of the notes was sold at a premium, a company spokesperson said on Wednesday. ADVERTISEMENT In the debut bond sale under India's newly-introduced ESG debt securities framework, L&T on Wednesday raised 5 billion rupees ($58 million) through three-year notes at a coupon of 6.35%. This compares with 6.45%-6.50% secondary market yields on the company's near three-year bonds, according to merchant bankers. "We remain open to raising more funds through ESG-linked issuances...," the spokesperson told Reuters. "Should the need arise, and if market conditions are conducive, we may consider the ESG debt market again." The notes, rated AAA by Crisil, saw banks and mutual funds as investors, the spokesperson said. SBI Mutual Fund was the anchor investor and bought at least 750 million rupees of the bonds, bankers said. The fund house did not reply to a Reuters email seeking comment. ADVERTISEMENT "We were able to achieve beneficial pricing on this ESG bond issuance compared to our plain vanilla bonds. The strong investor interest in credible ESG-labelled instruments helped us price the bond attractively," the L&T spokesperson said. The deal signals that credible ESG-labelled issuances can secure premium pricing purely on the strength of transparency and investor confidence, said Venkatakrishnan Srinivasan, founder and managing partner at debt advisory firm Rockfort Fincap. ADVERTISEMENT "Going ahead, this could open the gates for more corporates to access the ESG bond market, and issuers with strong sustainability credentials may benefit from favourable pricing." (You can now subscribe to our ETMarkets WhatsApp channel)
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Business Standard
7 days ago
- Business
- Business Standard
AIF investments rise 32% to ₹5.38 trillion by March 2025, shows data
Rising volatility and evolving macro trends are driving HNIs to invest more in AIFs, which reached ₹5.38 trillion by March 2025, as they move beyond traditional asset classes New Delhi Investments in Alternative Investment Funds (AIFs) by India's high net-worth individuals (HNIs) rose to ₹5.38 trillion by the end of the March 2025 quarter, up 32 per cent from ₹4.07 trillion in the same period last year, according to data from the Securities and Exchange Board of India (Sebi). The increase is linked to rising market volatility and shifting global macroeconomic trends, prompting affluent investors to diversify their portfolios and reduce exposure to traditional asset classes. The move towards AIFs reflects a growing interest in investment options that provide broader risk management and are less correlated with public markets. These evolving market conditions are encouraging HNIs to move away from conventional assets like equities and fixed income instruments, according to a report by Multi-Act Trade and Investments, an investment advisory firm. AIFs are privately pooled investment vehicles regulated by Sebi, which invest in line with a defined strategy. They are classified into three categories: Category I includes venture capital and infrastructure funds; Category II covers private equity and debt funds; and Category III consists of hedge funds and other complex strategies. These funds are typically accessed by institutional and wealthy investors. The trend marks a notable shift in allocation strategies among HNIs and family offices, with many focusing on private market opportunities that allow for longer investment horizons. 'Family office portfolios have a really long horizon, so their ability to participate in private investments is much higher than most other investors,' the report stated. The appeal of AIFs lies in their potential to deliver higher returns and offer stability during periods of market stress. The surge in interest has been driven by the need for diversification, a hedge against inflation, and access to expert fund management. HNIs are investing across a wide range of segments including private equity, venture capital, credit strategies, real estate-focused AIFs, long-short hedge funds, and other portfolio management strategies. Younger investors, in particular, are showing interest in ESG-linked funds, climate-tech ventures, and sustainable finance vehicles.
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Business Standard
09-06-2025
- Business
- Business Standard
L&T bags up to ₹2,500 crore order from JSW Energy for heavy civil unit
Larsen & Toubro 's Heavy Civil Infrastructure (HCI) business vertical has secured an order from JSW Energy to execute the Bhavali Pumped Storage Project (PSP) in Maharashtra. The order, classified as 'significant' by L&T, is valued between ₹1,000 crore and ₹2,500 crore, according to the company's regulatory filing. The Bhavali PSP will be located across the Nashik and Thane districts and will have a total installed capacity of 1,500 MW. It is designed to house multiple smaller generating units to support large-scale grid stabilisation. Scope includes tunnels, reservoirs, and powerhouse L&T's contract includes the complete execution of civil works, including the construction of approach roads, upper and lower reservoirs, a water conductor system, pressure tunnels, and an underground powerhouse. In its filing, L&T said, 'The order reaffirms L&T's proven capabilities in delivering complex hydroelectric infrastructure and reinforces its position as a key enabler in India's quest for renewable energy. Pumped storage projects like the Bhavali PSP are pivotal to grid stability, particularly in the context of growing integration of variable renewable energy sources.' L&T launches first ESG-linked bonds under Sebi framework Last week, L&T raised ₹500 crore through its first ESG-linked bond offering, becoming the first listed company to issue sustainability-linked securities under the Securities and Exchange Board of India's (Sebi) newly introduced framework. Arranged exclusively by HSBC, the transaction was finalised a day after Sebi unveiled its regulatory framework to promote transparency and measurable ESG goals. The new rules mandate external assessments and specific environmental or social targets for issuers. In its ESG-linked issuance, L&T has committed to reducing freshwater consumption intensity and greenhouse gas emissions. The company has also set long-term goals of achieving water neutrality by 2035 and carbon neutrality by 2040. These developments highlight L&T's growing presence in both green infrastructure development and sustainable finance.
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Business Standard
06-06-2025
- Business
- Business Standard
L&T raises Rs 500 crore via first listed ESG bond under Sebi framework
Larsen & Toubro (L&T), engineering and construction major, has raised Rs 500 crore through an ESG-linked bond issuance, the first listed deal under the Securities and Exchange Board of India's (Sebi) new framework for sustainability-linked securities, the company said in a press statement on Friday. The transaction, solely arranged by British bank HSBC, comes a day after Sebi announced the regulatory framework designed to promote transparency, accountability and alignment with international ESG standards. The framework sets out stricter disclosure norms for ESG and sustainability-linked bonds, including mandatory external assessments and measurable environmental or social targets. As part of the deal, the engineering and construction conglomerate has tied the issuance to specific environmental goals, such as reducing the intensity of its freshwater usage and greenhouse gas emissions, the company said. L&T has longer-term targets of water neutrality by 2035 and carbon neutrality by 2040. While ESG fundraising in India has so far been limited to green bonds by financial institutions and a handful of large corporates, Sebi's new guidelines are expected to expand the market by standardising disclosures and setting accountability mechanisms. 'We take pride in leading the transition to sustainable finance under Sebi's new ESG framework,' said a senior spokesperson from L&T. 'This bond issuance reinforces our steadfast commitment to sustainable development and responsible business practices while aligning our finances with environmental targets.' 'We are pleased to partner with L&T on the first INR Sustainability Linked Bond under Sebi's guidelines, reinforcing our commitment to supporting the Clean Energy Transition in India,' said HSBC India.
