Mindspace Business Parks REIT has raised ₹650 crore from International Finance Corporation through the issuance of sustainability-linked bonds. The coupon of the bond is linked to Mindspace’s commitment to achieve certain ESG targets towards building a greener eco-system.
The bonds have a tenure of seven years and have a AAA (Stable) rating from ICRA.
Mindspace REIT has undertaken certain ESG targets critical to its operations. These include reduction in GHG emissions, increasing the share of green certified area for existing buildings under operations and maintenance, and reduction in energy intensity. The coupon of these bonds is fixed in nature, and will be stepped down, in a staggered manner, basis achievement of the set targets.
Mindspace REIT said it has put into place its maiden sustainability-linked financing framework under which Mindspace REIT and its SPVs can undertake issuances of sustainability linked instruments. The framework is based on five key components - selection of KPIs, calibration of sustainability performance targets, sustainability-linked instrument characteristics, reporting and verification.
Bureau Veritas provided a second party opinion on the framework, confirming its alignment with Sustainability Linked Bond Principles, issued by the International Capital Markets Association and Sustainability Linked Loan Principles published by the Loan Market Association.