Mindspace announces REIT level green bond issuance in India
2 min read 15 Mar 2023, 07:22 PM ISTThrough this issuance, Mindspace REIT raised ₹5.5 billion with a tenor of three years and thirty days at a fixed quarterly coupon of 8.02% per annum payable quarterly.
PremiumMindspace Business Parks on 15 March announced that it has recently released its inaugural green financing framework under which Mindspace REIT, under which issuances of green debt securities in the form of bonds or debentures can be undertaken.
Through this issuance, Mindspace REIT raised ₹5.5 billion with a tenor of three years and thirty days at a fixed quarterly coupon of 8.02% per annum payable quarterly.
The firm stated that the framework is aligned with the Green Bond Principles thas been developed by the International Capital Markets Association and is based upon four key areas including: 1) use of proceeds 2) project evaluation and selection 3) management of proceeds and 4) allocation and impact reporting.
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Briefing more, the firm said that the framework defines impactful eligible end use categories such as green buildings or projects, renewable energy, energy efficiency amongst other uses for which green financing proceeds can be utilized.
For the current issuance, eligible green project is identified as Gera Commerzone Kharadi, Pune which has a total leasable area of 2.9 msf, the firm said, adding, all the completed and under construction buildings of this project are rated Indian Green Building Council (IGBC) Gold or Platinum.
For this, Mindspace REIT appointed Sustainalytics US Inc. -- a Morningstar company -- to evaluate the Green Financing Framework and the alignment thereof with relevant industry standards.
“We are excited to complete the first Green Bond issuance by an Indian REIT and integrate green financing in our business and projects. With this issuance, our collective green financing availed has increased to over INR 12 billion. This issuance further reiterates our commitment to building responsible business by setting up newer sustainability benchmarks. Today, over 90% of our portfolio is Green Certified and we continue to develop sustainable spaces for the future. This green financing is just another step to achieve our vision - To be a sustainability leader in the real estate sector by creating long-term value for stakeholders through ESG focused business strategy," Mindspace Business Parks REIT's CEO Vinod Rohira said.
In the meantime, TRUST Group's founder Nipa Sheth said that opined that the issuance will establish a new milestone for ESG financing in India’s Corporate bond markets and REITs.
“Our team is pleased to observe further development in the Indian sustainable finance market," says Nicholas Gandolfo, Vice President of APAC Corporate Solutions at Morningstar Sustainalytics, adding, “It’s promising to see the property sector continue to advance its focus on the positive economic and societal impacts related to sustainability."
