Mindspace Business Parks REIT Secures Rs 650 Cr from IFC Through Sustainability Bonds

Mindspace Business Parks REIT, backed by the K Raheja Group, has successfully raised Rs.650 crore through a sustainability-linked bond from the International Finance Corporation (IFC), the private sector arm of the World Bank Group. This issuance marks the first of its kind by an Indian REIT, showcasing Mindspace’s target to sustainable growth.

Financing and Refinancing

The Rs.650 crore bond issuance is primarily going to be used for refinancing existing loans, boosting financial flexibility for Mindspace Business Parks REIT. The bond’s coupon is fixed and linked to the REIT’s performance in achieving specific Environmental, Social, and Governance (ESG) goals. These targets include reducing greenhouse gas emissions across all scopes, increasing green certified areas in operational buildings, and decreasing energy intensity.

Commitment to ESG Goals

CEO Ramesh Nair mentioned that they are dedicated to achieving ESG targets with the funds. Mindspace Business Parks REIT has now raised a cumulative total of Rs.1860 crore through green and sustainability-linked financing, solidifying its overall position in sustainable finance within India’s real estate sector.

Financial Performance 

In the March quarter this year, Mindspace Business Parks REIT reported a 9% growth in Net Operating Income (NOI), amounting to Rs.476.8 crore. The company also distributed Rs.282.9 crore to unit holders during the same period, totaling approximately Rs.1,136.2 crore for FY24. Looking ahead, Mindspace aims to deliver 4.4 million square feet of new assets by FY27, which is expected to drive further NOI growth.

Conclusion: In conclusion, Mindspace Business Parks REIT’s successful issuance of the Rs.650 crore sustainability-linked bond from IFC showcases its proactive approach to sustainable financing and operational edge in the real estate market. With sustainability at the forefront of its strategy, Mindspace has continued to expand its portfolio and boost efficiency in the industry. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.