Mindspace Business Parks REIT raises ₹550 crore via sustainability-linked bonds

Mindspace REIT raises ₹550 crore from IFC via bonds, becoming the first to issue sustainability-linked bonds under SEBI’s ESG framework

Mindspace Business Parks REIT on August 20 said it has raised an additional ₹550 crore from the International Finance Corporation (IFC), the World Bank Group’s private sector investment arm, through a bond issue. It is the first REIT to issue sustainability-linked bonds under SEBI’s new ESG framework.

"With this issuance, we’re taking a big step forward on our sustainability journey," Ramesh Nair, MD and CEO of Mindspace REIT, said, (Representational photo) (Mindspace Business Parks REIT)

In a regulatory filing, the company said the additional ₹550 crore fundraising follows its initial capital raising of ₹650 crore through the issuance of Sustainability-Linked Bonds (SLBs) in June 2024, bringing the total SLB issuance to ₹1,200 crore.

The bond tenure is eight years.

According to the company, this issuance marks a landmark moment in India’s real estate sector, as the first SLB issuance by an Indian REIT under the new Environment, Social and Governance (ESG) framework introduced by the Securities and Exchange Board of India (SEBI).

The company said in a statement that this milestone reflects Mindspace REIT’s leadership in responsible and sustainable financing, demonstrating complete alignment with SEBI’s enhanced standards for transparency, independent review, and ongoing compliance in ESG debt issuances.

Ramesh Nair, MD and CEO of Mindspace REIT, said, "With this issuance, we’re taking a big step forward on our sustainability journey. Being the first REIT to raise Sustainability-Linked Bonds under SEBI’s new ESG framework shows our intent to lead from the front. Partnering with IFC gives us global backing, and it will help us drive energy efficiency, add more green-certified space, and build a portfolio that’s ready for the future."

According to the company, by linking financial outcomes to sustainability performance, Mindspace REIT is embedding ESG principles into the core of its growth strategy.

“IFC is pleased to deepen its partnership with Mindspace REIT through an additional investment, fuelling the growth of REITs as an asset class and strengthening India’s real estate sector. By championing sustainable buildings and innovative financing, we are creating opportunities for developers, investors, and communities," Imad N Fakhoury, Regional Director for South Asia, IFC, said.

"This investment will accelerate the development of world-class office infrastructure that generates jobs, attracts global capability centres and top employers, and strengthens India’s business environment," Fakhoury said.