IFC Invests $75 Million In NDR InvIT’s First Sustainability Linked Bond
IFC has invested $75 million in NDR InvIT's inaugural Sustainability-Linked Bond, aiming to enhance sustainable warehousing infrastructure and support the logistics sector’s growth in India.
The International Finance Corp. has made an investment of $75 million (approximately Rs 630 crore) in a domestic currency Sustainability Linked Bond issued by NDR InvIT. This strategic investment aims to enhance sustainable warehousing infrastructure and support the logistics sector.
NDR InvIT is sponsored by NDR Warehousing Pvt. Ltd. This sustainability-linked bond marks the first of its kind by a warehousing InvIT in India, as stated by the IFC, a member of the World Bank Group, in a joint announcement.
The SLB will help secure EDGE Certification—an international green building standard from IFC—for existing operational facilities, aiming to reduce greenhouse gas emissions and lower water usage.
Additionally, the SLB will support raising funds for the expansion of NDR’s warehousing and logistics business while motivating other warehouse developers and operators in India to improve the environmental performance of their existing warehouse assets.
With the rapid expansion of e-commerce and manufacturing, the Indian warehousing sector is poised for substantial growth, with warehouse space expected to increase from 300 million square feet in fiscal 2023 to 500 million square feet by 2030, it said.
This growth presents an opportunity to invest in modern, sustainable warehouses and foster stronger collaboration with the private sector, it said.
India’s warehousing sector is crucial for economic growth, supporting e-commerce, manufacturing, and the seamless movement of goods across industries, said Imad Fakhoury, IFC's Regional Director for South Asia.
"As demand for efficient warehousing solutions continues to rise, we are pleased to partner with NDR InvIT Trust on their first-ever listed bond—India’s first sustainability-linked bond issued by an infrastructure investment trust. The initiative aims to strengthen market competitiveness, attract global capital, and spur growth in this critical sector," he said.
Commenting on the partnership, Amrutesh Reddy, Director, NDR InvIT Managers, said, "This partnership with IFC underscores our commitment to driving innovation, sustainability, and economic growth in India’s logistics sector." Additionally, it said, IFC will provide technical support to help the InvIT achieve environmental and social governance targets, including EDGE (Excellence in Design for Greater Efficiencies) certification for their warehouse assets.
