Mindspace REIT Secures ₹650 Crore Sustainability-Linked Bonds from IFC

Mindspace Business Parks REIT announced on June 25 that it has raised ₹650 crore through sustainability-linked bonds issued by the International Finance Corporation (IFC), the private sector arm of the World Bank Group.

According to the company’s regulatory filing, the funds will primarily be used to refinance existing loans.

The bond’s coupon rate is linked to Mindspace’s environmental, social, and governance (ESG) targets aimed at promoting a greener ecosystem. The fixed coupon rate will decrease incrementally as the company achieves specific ESG milestones.

These bonds have a tenure of seven years.

Mindspace REIT, sponsored by the K Raheja Group, manages a portfolio of 33.2 million square feet, including 26.3 million square feet of completed space. The company has committed to various ESG goals, such as reducing greenhouse gas (GHG) emissions (Scope 1, 2, and 3), increasing the proportion of green-certified buildings, and reducing energy intensity.

“We are pleased to announce a significant milestone in our sustainability efforts as we become the first Indian REIT to issue sustainability-linked bonds. IFC has fully subscribed to this issuance, following our initial green bond issue in March 2023,” said Ramesh Nair, CEO of Mindspace Business Parks REIT.

“Our mission to ‘build sustainable ecosystems’ enables us to create long-term value for stakeholders, combining financial success with environmental and social benefits,” added Nair.

Wendy Werner, IFC Country Head for India, commented on the partnership, stating, “We are delighted to partner with Mindspace REIT for its inaugural sustainability-linked bond. IFC’s investment will help Mindspace enhance the sustainability of its business parks and reduce greenhouse gas emissions annually.”

“This collaboration aligns with India’s net-zero ambitions and showcases the potential of climate finance in the real estate sector. Our support aims to attract more diverse and long-term funding, which is crucial for building a greener, more resilient future,” Werner added.

In January 2024, Mindspace Business Parks REIT announced a collaboration with IIT Bombay on a research project focused on Climate Risk Assessment. The pilot project involved installing on-site weather stations at Mindspace Airoli West in the Mumbai Metropolitan Region.

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