IFC invests Rs 630 cr in NDR InvIT to bolster sustainable warehousing

IFC has invested USD 75 million (about Rs 630 crore) in domestic currency Sustainability Linked Bond issued by NDR InvIT in a strategic move to boost sustainable warehousing infrastructure and promote logistics sector. 

This Infrastructure Investment Trust (InvIT) is sponsored by NDR Warehousing Private Limited. 

This Sustainability Linked Bond (SLB) is the first by a warehousing InvIT in India International Finance Corporation (IFC), a member of the World Bank Group, said in a joint statement. 

It will facilitate EDGE Certification — an international green building certification system by IFC — of existing in use facilities, reduce greenhouse gas emissions and lower water consumption, it said. 

The SLB will also support raising capital for the expansion of NDR's warehousing and logistics business, encouraging other warehouse developers and operators in India to enhance the climate credentials of their existing warehouse stock, it said. 

With the rapid expansion of e-commerce and manufacturing, the Indian warehousing sector is poised for substantial growth, with warehouse space expected to increase from 300 million square feet in FY23 to 500 million square feet by 2030, it said. 

This growth presents an opportunity to invest in modern, sustainable warehouses and foster stronger collaboration with the private sector, it said. 

India's warehousing sector is crucial for economic growth, supporting e-commerce, manufacturing, and the seamless movement of goods across industries, said Imad Fakhoury, IFC's Regional Director for South Asia. 

"As demand for efficient warehousing solutions continues to rise, we are pleased to partner with NDR InvIT Trust on their first-ever listed bond—India's first sustainability-linked bond issued by an infrastructure investment trust. The initiative aims to strengthen market competitiveness, attract global capital, and spur growth in this critical sector," he said. 

Commenting on the partnership, Amrutesh Reddy, Director, NDR InvIT Managers said, "this partnership with IFC underscores our commitment to driving innovation, sustainability, and economic growth in India's logistics sector."  Additionally, it said, IFC will provide technical support to help the InvIT achieve Environmental and Social Governance targets including EDGE (Excellence in Design for Greater Efficiencies) Certification for their warehouse assets.