Mindspace REIT becomes the first Indian REIT to issue sustainability-linked bonds, raising ₹650 crore from IFC to achieve ESG goals and refinance existing debt.
Mindspace Business Parks REIT, a leading name in Indian real estate investment trusts (REITs), has achieved a significant milestone. The company recently announced securing ₹650 crore through the issuance of sustainability-linked bonds. This marks the first time an Indian REIT has utilized this innovative financial tool.
The International Finance Corporation (IFC), the private investment arm of the World Bank Group, fully subscribed to the issuance. These bonds have a seven-year tenure, and the unique aspect lies in their interest rate. The fixed coupon rate will see a gradual decrease as Mindspace REIT accomplishes pre-defined environmental, social, and governance (ESG) goals. These goals include reducing greenhouse gas emissions, increasing green-certified buildings within their portfolio, and lowering energy consumption.
This move by Mindspace REIT signifies a progressive approach towards sustainable development within the Indian real estate sector. The funds raised will be primarily directed towards refinancing existing loans, improving the company’s financial flexibility.
