India’s Mindspace Business Parks REIT has raised funds by issuing Sustainability-linked bonds worth Rs 650 crore ($77 million) from the International Finance Corporation (IFC), thus becoming the first real estate investment trust (REIT) of the country to issue such bonds.
The bonds have been issued for a tenure of seven years. IFC country head Wendy Werner informed that the investment would help Mindspace enhance the sustainability of its portfolio of business parks and reduce greenhouse gas emissions year-on-year.
“This follows our maiden green bond issue in March 2023,” said Ramesh Nair, chief executive of Mindspace Business Parks REIT, adding, “Post this issuance our cumulative green/sustainability linked financing now stands at Rs 1,860 crore, strengthening our commitment to responsible growth.”
The coupon of these bonds is fixed in nature and shall be stepped down based on the achievement of set targets. These include reduction in greenhouse gas emissions (Scope 1, 2 and 3), increasing the share of green certified area for existing buildings (under operations and maintenance), and reduction in energy intensity.
