Mindspace Business Parks REIT has successfully raised ₹550 crore from the International Finance Corporation (IFC), the private sector investment arm of the World Bank Group, through a bond issuance. This milestone marks the first sustainability-linked bond (SLB) issuance by an Indian Real Estate Investment Trust (REIT) under SEBI’s recently introduced Environment, Social, and Governance (ESG) framework.
Ramesh Nair, MD and CEO of Mindspace REIT, highlighted the strategic importance of the issuance, stating that it represents a significant step forward in the company’s sustainability journey. The funds raised will be used to expand green-certified office spaces and enhance energy-efficient infrastructure within its portfolio.
According to a regulatory filing, this latest fundraising follows the REIT’s earlier SLB issuance of ₹650 crore in June 2024, bringing the total raised through sustainability-linked instruments to ₹1,200 crore. The tenure of the new bonds is eight years, aligning long-term financing with sustainable growth objectives.
The SLB issuance under SEBI’s ESG framework requires full compliance with transparency standards, independent verification, and regular monitoring of sustainability performance. By linking financial outcomes to ESG targets, Mindspace REIT embeds sustainable practices into its core strategy, signaling leadership in responsible financing within India’s commercial real estate sector.
Imad N Fakhoury, Regional Director for South Asia at IFC, said the additional investment strengthens the role of REITs in India’s commercial real estate ecosystem. He noted that supporting sustainable buildings and innovative financing structures creates opportunities for developers, investors, and communities. The collaboration between IFC and Mindspace REIT ensures global backing and promotes environmentally responsible growth across the sector.
The REIT’s ESG-linked strategy aims to develop office infrastructure that attracts global capability centres, top-tier employers, and fosters employment growth. Ramesh Nair emphasized that sustainability-linked financing allows Mindspace REIT to integrate environmental considerations directly into business planning while generating long-term shareholder value.
This announcement underscores the growing focus on ESG-aligned investments within India’s commercial real estate market. By pioneering SLB issuances, Mindspace REIT sets a precedent for other market participants, highlighting the potential of combining financial performance with measurable sustainability outcomes.
SEBI’s ESG framework provides structured guidance for REITs and corporate issuers to ensure that debt instruments linked to sustainability adhere to defined performance metrics. It emphasizes independent verification, transparency in reporting, and measurable environmental and social outcomes.
Mindspace REIT manages a diversified portfolio of office and business park assets across India. With this SLB issuance, it reinforces its position as a market leader in sustainable commercial real estate, establishing benchmarks for green financing and corporate responsibility. The integration of ESG principles into core operations not only addresses regulatory expectations but also responds to growing investor and tenant demand for environmentally conscious infrastructure.
Image source- embassyofficeparks.com
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