Mindspace REIT Raises Rs 650 Cr via Sustainability Bonds

New Delhi, Jun 25 (PTI) Mindspace Business Parks REIT has raised Rs 650 crore from International Finance Corporation through issue of sustainability linked bonds.

The company will use the fund mainly to refinance existing loans.

In a regulatory filing on Tuesday, Mindspace REIT announced its Rs 650 crore sustainability linked bond issuance that has been placed with International Finance Corporation (IFC), the private sector arm of the World Bank Group.

The coupon of the bond is linked to Mindspace's commitment to achieve certain ESG targets towards building a greener eco-system.

These bonds are issued for a tenure of 7 years.

Mindspace REIT has undertaken certain ESG targets critical to its operations.

These include reduction in GHG 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.

The coupon of these bonds is fixed in nature and would be stepped down, in a staggered manner, on the basis of achievement of targets.

Ramesh Nair, CEO of Mindspace Business Parks REIT, claimed that it has become the first Indian REIT to issue sustainability linked bonds.

International Finance Corporation fully subscribed to this issuance, he added.

"This follows our maiden green bond issue in March 2023. Post this issuance, our cumulative green/sustainability linked financing now stands at Rs 18.6 billion strengthening our commitment to responsible growth," Nair said.

He said the company's purpose to 'build sustainable ecosystems' helps in creating long-term value for stakeholders, blending financial success with environmental and social benefits.

"We are pleased to partner with Mindspace REIT for its maiden sustainability-linked bond," Wendy Werner, IFC Country Head for India, said.

"IFC's investment will help Mindspace enhance the sustainability of its portfolio of business parks and reduce greenhouse gas emissions year-on-year," Werner said.

Mindspace REIT is sponsored by the K Raheja Group. It has a portfolio of 33.2 million square feet comprising 26.3 million square feet of completed area.