Brookfield India Reit raises ₹2,000 crore via sustainability-linked bonds

The IFC-anchored five-year bond issue links financing to renewable energy and water stewardship targets, marking the largest sustainability-linked bond raised by a Reit in India

Brookfield India Real Estate Trust has raised Rs 2,000 crore through the issuance of sustainability-linked bonds (SLBs). The issuance was anchored by the International Finance Corporation (IFC), a member of the World Bank Group.

 

The bonds are issued for a tenure of five years, and the proceeds from this issuance will be used for providing shareholder loans to select Reit entities and general corporate purposes. The issuance has been rated Crisil AAA/Stable by Crisil Ratings and Icra AAA Stable by Icra.

 

What makes this SLB issuance significant for the Reit sector? 

The real estate investment trust (Reit) said the issuance saw participation by a diversified pool of marquee investors. This is the largest sustainability-linked bond raised by a Reit in the country. Earlier in August, Mindspace Business Parks Reit raised Rs 550 crore through SLBs from IFC.

 

How does Brookfield link sustainability goals to financing? 

Alok Aggarwal, chief executive officer and managing director, Brookfield India Real Estate Trust, said, “IFC’s role as the anchor investor, together with the strong support from marquee investors, reflects confidence in our sustainability strategy and long-term approach. Embedding measurable sustainability outcomes into our financing framework reinforces our ambition to lead the sector’s shift toward low-carbon, resource-efficient operations, achieve net zero by 2040 or sooner, and build a resilient, water-positive future across our portfolio.”

 

The Brookfield bond links financial performance to key performance indicators (KPIs) on renewable energy adoption and water stewardship, driving material increases in portfolio-wide renewable energy use and improvements in water recycling, efficiency, and responsible resource management.

 

What does the IFC see as the impact of this investment? 

Imad Fakhoury, regional division director for South Asia, IFC, said, “We are pleased to anchor Brookfield India Reit’s inaugural SLB, supporting the growth of India’s Global Capability Centre (GCC) ecosystem while deepening our partnership as an existing shareholder. The investment links capital to performance, incentivising sustainability across Biret’s operations, including energy transition and more efficient freshwater use, and reflects our shared commitment to resource-efficient growth.”

 

Fakhoury said the investment is aligned with IFC’s programmatic approach to resilient urban development through the delivery of high-quality, sustainable office infrastructure critical to the growth of GCCs, which are key enablers of direct and indirect job creation, skills development, and global competitiveness.

 

How does this fundraise fit into Brookfield India Reit’s expansion plans? 

Brookfield India Reit manages 10 Grade A assets with 29.1 million square feet of leasable area across key Indian markets. Earlier this month, the Reit raised Rs 3,500 crore, or $390 million, through a qualified institutional placement.

 

Proceeds from the QIP are to be used to expand the Reit’s portfolio, repay debt, fund general corporate purposes, and acquire Ecoworld, a Grade A, 48-acre, 7.7 million square feet office campus in Bengaluru.

 

Last month, the Reit signed binding agreements to acquire Ecoworld for Rs 13,125 crore.