Ramesh Nair, CEO, Mindspace REIT, commented, "This issuance follows our inaugural green bond in March 2023. With this latest funding, our cumulative green and sustainability linked financing now amounts to Rs 18.6 billion, reinforcing our dedication to sustainable growth."

These bonds have a maturity period of seven years and have received a [ICRA] AAA(Stable) rating from ICRA. Shardul Amarchand Mangaldas & Co acted as legal counsel for the issuer in this transaction.

"This collaboration supports India's aspirations for net-zero emissions and underscores the feasibility of climate finance in the real estate sector," noted Wendy Werner, Head- India, IFC. "Our aim is to attract more diverse and long-term funding, crucial for building a greener and more resilient future."

Mindspace REIT has set specific ESG targets integral to its operational strategy. These include reducing greenhouse gas emissions (Scope 1, 2, and 3), increasing the portion of green certified area in existing buildings (under operations and maintenance), and lowering energy intensity. The bond's coupon is initially fixed but will be progressively reduced based on the achievement of these predefined targets.

The company has established its maiden sustainability-linked financing framework, enabling Mindspace REIT and/or its SPVs to issue sustainability-linked instruments in the future.

(Source: ET)