Mumbai: Mindspace Business Parks REIT has successfully raised an additional ₹550 crore through Sustainability Linked Bonds (SLBs) from the International Finance Corporation (IFC), the private sector investment arm of the World Bank Group.
This brings the Mindspace REIT Sustainability Linked Bonds issuance to a cumulative ₹1,200 crore, including the initial ₹650 crore raised in June 2024.
First Indian REIT to Issue Sustainability Linked Bonds Under SEBI ESG Framework
Mindspace REIT Sustainability Linked Bonds issuance marks a significant milestone for India’s real estate sector, as it represents the first Sustainability Linked Bonds by an Indian REIT under the new SEBI ESG framework for debt securities, introduced on June 5, 2025.
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The framework emphasizes transparency, independent reviews, and strict compliance for ESG-linked financing.
Key Details of the Mindspace REIT Sustainability Linked Bonds
- Incremental Amount Raised: ₹550 crore
- Investor: International Finance Corporation (IFC)
- Total Issuance: ₹1,200 crore
- Tenure: 8 years
- Credit Rating: [ICRA] AAA (Stable)
- Second Party Opinion (SPO): Bureau Veritas Industrial Services (India) Pvt. Ltd.
- Legal Counsel: Shardul Amarchand Mangaldas & Co.
Sustainability-Linked Structure and ESG Targets
The Mindspace REIT Sustainability Linked Bonds are directly tied to measurable environmental and social performance goals. These include:
- Reduction in greenhouse gas (GHG) emissions
- Growth in green-certified real estate portfolio
- Reduction in energy intensity across assets
By linking financial terms to ESG outcomes, Mindspace REIT has embedded sustainability at the core of its business strategy.
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Ramesh Nair, MD & CEO, Mindspace REIT, stated: “With the Mindspace REIT Sustainability Linked Bonds issuance, we’re taking a big step forward on our sustainability journey. Being the first REIT to raise Sustainability Linked Bonds under SEBI’s ESG framework shows our commitment to responsible growth. Partnering with IFC provides global backing to accelerate energy efficiency, expand green-certified spaces, and future-proof our portfolio.”
Imad N Fakhoury, Regional Director for South Asia, IFC, added: “This investment deepens IFC’s partnership with Mindspace REIT and supports the growth of REITs as an asset class. By championing sustainable buildings and innovative financing, we are strengthening India’s real estate sector and creating opportunities for global employers and communities.”
Mindspace REIT’s Sustainability-Linked Financing Framework, launched in 2024, aligns with global best practices such as the ICMA Sustainability Linked Bond Principles (SLBP) and the Loan Market Association’s Sustainability Linked Loan Principles (SLLP). Bureau Veritas confirmed that the framework’s KPIs are ambitious, relevant, and aligned with SEBI’s ESG guidelines.
