Mindspace REIT secures Rs 650-crore sustainability-linked bond from IFC

In the March quarter, Mindspace Business Parks REIT posted a growth of nine percent in net operating income (NOI) at Rs 476.8 crore.

Mindspace Business Parks REIT has secured a Rs 650 crore sustainability-linked bond from the International Finance Corporation (IFC), the private sector arm of the World Bank Group, the company announced on June 25.

The coupon of the bond is linked to Mindspace’s commitment to achieve certain ESG targets towards building a greener eco-system and the tenure is for seven years, the company added.

Mindspace REIT has undertaken certain ESG targets, including reduction of greenhouse gas (GHG) emissions, increasing the share of green certified area for existing buildings (under operations and maintenance), and reduction in energy intensity.

"We are thrilled to announce another significant milestone in our sustainability journey as we become the first Indian REIT to issue sustainability-linked bonds. International Finance Corporation fully subscribed to this issuance. This follows our maiden green bond issue in March 2023. Post this issuance our cumulative green/sustainability-linked financing now stands at Rs 1860 crore, strengthening our commitment to responsible growth,” Ramesh Nair, CEO, Mindspace Business Parks REIT, said.

In the March quarter, Mindspace Business Parks REIT posted a growth of nine percent in net operating income (NOI) at Rs 476.8 crore. The firm also declared a distribution of Rs 282.9 crore to unitholders. Cumulatively, it distributed around Rs 1,136.2 crore to unitholders for the last fiscal year.

The company is looking to deliver 4.4 million sq. ft. of assets by FY27, which should drive NOI growth.