New Delhi, Mindspace Business Parks REIT has raised Rs 650 crore from the International Finance Corporation by issuing sustainability-linked bonds.
The company will use the fund primarily to refinance existing loans.
In a regulatory filing on Tuesday, Mindspace REIT announced its sustainability-linked bond issue worth Rs 650 crore that has been placed with the International Finance Corporation (IFC), the private sector arm of the World Bank Group.
The bond coupon is linked to Mindspace's commitment to achieving certain ESG goals to build a greener ecosystem.
These bonds are issued for a duration of 7 years.
Mindspace REIT has taken on certain ESG objectives critical to its operations.
These include reducing GHG emissions (Scope 1, 2 and 3), increasing the proportion of certified green area for existing buildings (in operation and maintenance) and reducing energy intensity.
The coupon of these bonds is fixed in nature and would be reduced, in a phased manner, depending on the achievement of objectives.
Ramesh Nair, CEO of Mindspace Business Parks REIT, said it has become the first Indian REIT to issue sustainability-linked bonds.
The International Finance Corporation fully subscribed to this issue, he added.
"This follows our first green bond issuance in March 2023. Post this issuance, our cumulative funding linked to sustainability and sustainability now stands at Rs 18.6 billion, reinforcing our commitment to responsible growth," he said Nair.
He said the company's purpose of "building sustainable ecosystems" helps create long-term value for stakeholders, combining financial success with environmental and social benefits.
“We are pleased to partner with Mindspace REIT for its first sustainability-linked bond,” said Wendy Werner, IFC Country Director for India.
"IFC's investment will help Mindspace improve the sustainability of its business park portfolio and reduce greenhouse gas emissions year after year," Werner said.
Mindspace REIT is sponsored by K Raheja Group. It has a portfolio of 33.2 million square feet comprising 26.3 million square feet of finished area.
The company will use the fund primarily to refinance existing loans.
In a regulatory filing on Tuesday, Mindspace REIT announced its sustainability-linked bond issue worth Rs 650 crore that has been placed with the International Finance Corporation (IFC), the private sector arm of the World Bank Group.
The bond coupon is linked to Mindspace's commitment to achieving certain ESG goals to build a greener ecosystem.
These bonds are issued for a duration of 7 years.
Mindspace REIT has taken on certain ESG objectives critical to its operations.
These include reducing GHG emissions (Scope 1, 2 and 3), increasing the proportion of certified green area for existing buildings (in operation and maintenance) and reducing energy intensity.
The coupon of these bonds is fixed in nature and would be reduced, in a phased manner, depending on the achievement of objectives.
Ramesh Nair, CEO of Mindspace Business Parks REIT, said it has become the first Indian REIT to issue sustainability-linked bonds.
The International Finance Corporation fully subscribed to this issue, he added.
"This follows our first green bond issuance in March 2023. Post this issuance, our cumulative funding linked to sustainability and sustainability now stands at Rs 18.6 billion, reinforcing our commitment to responsible growth," he said Nair.
He said the company's purpose of "building sustainable ecosystems" helps create long-term value for stakeholders, combining financial success with environmental and social benefits.
“We are pleased to partner with Mindspace REIT for its first sustainability-linked bond,” said Wendy Werner, IFC Country Director for India.
"IFC's investment will help Mindspace improve the sustainability of its business park portfolio and reduce greenhouse gas emissions year after year," Werner said.
Mindspace REIT is sponsored by K Raheja Group. It has a portfolio of 33.2 million square feet comprising 26.3 million square feet of finished area.
