Mindspace REIT Raises ₹550 Crore Through Sustainability-Linked Bonds

Mindspace Business Parks REIT has successfully secured ₹550 crore from the International Finance Corporation (IFC), a member of the World Bank Group, through the issuance of sustainability-linked bonds (SLBs). This new funding marks a significant milestone for the REIT, bringing its total SLB issuance to ₹1,200 crore.

The latest bond issuance follows a previous round in which Mindspace REIT raised ₹650 crore. Notably, this is the first issuance of SLBs since the Securities and Exchange Board of India (SEBI) introduced a new framework for debt securities that comply with environmental, social, and governance (ESG) standards.

Strategic Move Towards Sustainability

Ramesh Nair, managing director and CEO of Mindspace REIT, emphasized the importance of this funding for the company’s sustainability efforts. “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,” Nair stated. He added that partnering with the IFC provides global support, enabling the REIT to enhance energy efficiency and expand its portfolio of green-certified spaces.

The ₹550 crore SLB has a tenure of eight years and has received a rating of ‘AAA’ from ICRA, reflecting its strong credit quality. The bond is structured with a semi-annual coupon rate of 7.414 percent. Legal counsel for the issuance was provided by the law firm Shardul Amarchand Mangaldas.

Sustainability-linked bonds are designed to support projects that meet predefined ESG objectives. These bonds often feature incentives, such as a step-down coupon rate, contingent upon achieving specific sustainability targets, thereby aligning financial performance with social and environmental impact.

As global investors increasingly prioritize sustainability, Mindspace REIT’s proactive approach positions it favorably within the evolving market landscape. The REIT’s latest funding initiative illustrates its commitment to not only enhancing its financial profile but also contributing to a more sustainable future.