Mindspace Reit raises Rs 550 cr via sustainability-linked bonds from IFC

Mindspace Reit has raised Rs 550 crore through sustainability-linked bonds from IFC, the World Bank Group arm, in the first issuance under Sebi's new ESG framework

K Raheja Corp-backed Mindspace Business Parks real estate investment trust (Reit) has raised Rs 550 crore through sustainability-linked bonds (SLBs) from the International Finance Corporation (IFC), the private sector investment arm of the World Bank Group.

 

This follows the Reit’s initial Rs 650-crore SLB issuance in June 2024, bringing the total SLB issuance to Rs 1,200 crore. The Rs 650-crore bond was also subscribed by IFC.

 

This is 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) in June 2025, the Reit said.

 

The allotted SLBs have a tenure of eight years and are rated ‘AAA (Stable)’ by Icra, a ratings agency.

 

In May 2025, Mindspace Reit had approved raising Rs 1,800 crore through a fresh issuance of non-convertible debt securities or commercial papers in one or more tranches.

 

Ramesh Nair, managing director and chief executive officer, 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.”

 

The SLB is directly tied to measurable ESG performance targets, ensuring accountability and impact. These include a reduction in greenhouse gas (GHG) emissions, an increase in the share of green-certified areas under management, and a reduction in energy intensity.

 

Imad 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.”