Mindspace Business Parks REIT has taken a significant step forward in its sustainability journey. The company announced on June 25 that it has secured a Rs 650 crore sustainability-linked bond from the International Finance Corporation (IFC) a member of the World Bank Group.
This seven-year bond marks a milestone for Mindspace REIT making it the first Indian Real Estate Investment Trust to issue such sustainability-linked securities. The bond’s coupon rate is tied to specific environmental social and governance (ESG) targets that Mindspace has committed to achieve.
These targets include reducing greenhouse gas emissions increasing the proportion of green-certified area in existing buildings and lowering overall energy intensity. By meeting these goals Mindspace aims to create a greener more sustainable real estate ecosystem.
Ramesh Nair CEO of Mindspace Business Parks REIT expressed enthusiasm about this development. He highlighted that this bond issue following their maiden green bond in March 2023 brings their total green and sustainability-linked financing to Rs 1860 crore.
This move underscores Mindspace REIT’s commitment to responsible growth and aligns with the growing global emphasis on sustainable business practices. It also demonstrates the increasing appetite among international investors for ESG-linked financial instruments in the Indian market.
