World Bank member IFC invests Rs 650 cr in Mindspace REIT’s sustainability-linked bonds
Synopsis
Global development institution International Finance Corporation (IFC), a member of the World Bank Group, has invested over Rs 650 crore in K Raheja Corp-backed Mindspace Business Parks REIT through an issue of sustainability-linked bonds.
Green bond loans are funds raised to finance construction of environment-friendly properties, while sustainability bonds are linked to achievement of sustainability targets.
“IFC's investment will help Mindspace enhance the sustainability of its portfolio of business parks and reduce greenhouse gas emissions year-on-year. This partnership aligns with India's net-zero ambitions and demonstrates the viability of climate finance in the real estate sector. Our support aims to attract more diverse and long-term funding at a time when private capital is critical to build a greener, more resilient future,” said Wendy Werner, IFC Country Head for India.
The coupon of this sustainability-linked bond is connected to Mindspace Business Park REIT’s commitment to achieve certain ESG targets towards building a greener eco-system. The proceeds of this fund raising are proposed to be utilised for refinancing amongst other uses.
Stocks Recommendations
Mindspace REIT has put into place its maiden sustainability-linked financing framework under which Mindspace REIT and/or its SPVs can undertake issuances of sustainability linked instruments. The framework is based on five key components including selection of key performance indicators, calibration of sustainability performance targets, sustainability-linked instrument characteristics, reporting, and verification.
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