Mindspace Business Parks REIT, backed by K Raheja Corp, has raised ₹550 crore through sustainability-linked bonds (SLBs) issued to the International Finance Corporation (IFC), the private sector arm of the World Bank Group. This marks the first SLB issuance by an Indian real estate investment trust under the new environment, social and governance (ESG) framework introduced by the Securities and Exchange Board of India (Sebi) in June this year.

The transaction comes after Mindspace REIT’s earlier ₹650-crore SLB issuance in June 2024, which was also subscribed by IFC. With the latest issue, the total raised through SLBs stands at ₹1,200 crore. The newly allotted bonds have a tenure of eight years and carry a rating of ‘AAA (Stable)’ from ratings agency ICRA.

In May 2025, the REIT’s board had approved plans to raise up to ₹1,800 crore through non-convertible debt securities or commercial papers, in one or more tranches, to support its funding requirements.

Ramesh Nair, managing director and chief executive officer of 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 proceeds of the SLB are directly tied to measurable ESG performance indicators, which include reducing greenhouse gas emissions, expanding the share of green-certified spaces in the portfolio, and lowering overall energy intensity. These targets are designed to ensure accountability and tangible progress on sustainability commitments.

Imad Fakhoury, regional director for South Asia at 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.”

With this latest issuance, Mindspace REIT continues to position itself as a leader in sustainable financing within the country’s real estate sector, aligning its growth plans with global ESG standards.