Bengaluru: Mindspace Business Parks REIT , owner and developer of quality Grade A office portfolio announces its INR 650 Crore (6.5Bn) Sustainability Linked Bond Issuance that has been placed with International Finance Corporation (IFC), the private sector arm of the World Bank Group. The coupon of the bond is linked to Mindspace’s commitment to achieve certain ESG targets towards building a greener eco-system.
Issue Details
These bonds are issued for a tenure of 7 years. This issuance has been rated [ICRA] AAA(Stable) by ICRA Ltd. Shardul Amarchand Mangaldas & Co served as the legal counsel of the Issuer for this transaction.
The ESG Targets
Mindspace REIT has undertaken certain ESG targets critical to its operations. These include reduction in GHG emissions (Scope 1, 2 and 3), 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 shall be stepped down, in a staggered manner, basis achievement of the set targets.
Sustainability Linked Financing Framework
Mindspace REIT has put into place its maiden sustainability-linked financing framework under which Mindspace REIT and/or its SPVs can undertake issuances of sustainability linked instruments. The framework is based on five key components: 1) Selection of KPIs 2) Calibration of Sustainability Performance Targets 3) Sustainability-Linked Instrument Characteristics 4) Reporting and 5) Verification.
Second Party Opinion Provided by Bureau Veritas
Bureau Veritas, a ‘Business to Business to Society’ services company and a world leader in sustainability services, provided a second party opinion on the framework, confirming its alignment with Sustainability Linked Bond Principles (SLBPs), issued by the International Capital Markets Association and Sustainability Linked Loan Principles (SLLP) published by the Loan Market Association (LMA). Bureau Veritas also concluded that the Sustainability Performance Targets are ambitious, meaningful and relevant in the context of Mindspace REIT’s broader sustainability and business strategy, representing a material improvement over a predefined timeline.