Mindspace Business Parks REIT, owner and developer of a high-quality Grade-A office portfolio, has successfully raised an additional INR 550 Crore via Sustainability Linked Bonds (SLBs) from the International Finance Corporation (IFC), the private sector investment arm of the World Bank Group. This follows its initial INR 650 Crore SLB issuance in June 2024, bringing the total SLB issuance to INR 1,200 Crore.
This issuance marks a landmark moment in India’s real estate sector, as the first SLB issuance by an Indian REIT under the new Environment, Social and Governance (ESG) framework introduced by the Securities and Exchange Board of India (SEBI), under the SEBI circular dated June 5, 2025, titled "Framework for Environment, Social and Governance (ESG) Debt Securities (other than green debt securities)” (SEBI ESG Circular). This milestone reflects Mindspace REIT’s leadership in responsible and sustainable financing, demonstrating complete alignment with SEBI’s enhanced standards for transparency, independent review, and ongoing compliance in ESG debt issuances.
Key issue details include: Amount Raised – INR 550 Crore (incremental); Investor – International Finance Corporation (IFC); Tenure – 8 years; Credit Rating – [ICRA] AAA (Stable); Second Party Opinion (SPO) – Bureau Veritas Industrial Services (India) Pvt. Ltd.; and Shardul Amarchand Mangaldas & Co as legal counsel to the Issuer for this transaction.
The SLB is directly tied to measurable ESG performance targets, ensuring accountability and impact. These include reduction in greenhouse gas (GHG) emissions, increase in the share of green-certified areas under management, and reduction in energy intensity. By linking financial outcomes to sustainability performance, Mindspace REIT is embedding ESG principles into the core of its growth strategy.
Mr. Ramesh Nair, MD and CEO, Mindspace REIT, said, "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. Partnering with IFC gives us global backing, and it will help us drive energy efficiency, add more green-certified space, and build a portfolio that’s ready for the future."
Mr. Imad N Fakhoury, Regional Director for South Asia, IFC, said, “IFC is pleased to deepen its partnership with Mindspace REIT through an additional investment, fuelling the growth of REITs as an asset class and strengthening India’s real estate sector. By championing sustainable buildings and innovative financing, we are creating opportunities for developers, investors, and communities. This investment will accelerate the development of world-class office infrastructure that generates jobs, attracts global capability centres and top employers, and strengthens India’s business environment.”
