International Finance Company (IFC) commits ₹630 crore to India’s pioneering Sustainable Investment Trust (InvIT) bond initiative.

The International Finance Corporation (IFC) has invested $75 million in a sustainability-linked bond (SLB) issued by NDR InvIT, an infrastructure investment trust. This is the first SLB issue by an InvIT in India, aimed at supporting sustainable warehousing and resource-efficient growth in the logistics sector. The proceeds will be used to expand warehousing operations and enhance infrastructure quality. The company plans to adopt global standards like EDGE Certification to contribute to India’s climate goals. The rapid growth of quick commerce and manufacturing in India has fueled the demand for warehousing, which is projected to reach 500 million square feet by 2030. The IFC will also provide technical support to help the InvIT achieve Environmental and Social Governance targets. SLBs are forward-looking debt instruments that tie financial terms to the issuer’s achievement of specific environmental or sustainability targets. The SLB market is expanding in India, with notable issues including UltraTech Cement’s $400 million SLB in 2021 and Mindspace Business Parks REIT’s SLBs worth ₹650 crore in June 2024.