IFC anchors first sustainability-linked bond issued by NDR InvIT Trust to promote green warehousing

International Finance Corporation (IFC) in Sustainability Linked Bonds (SLB) issued by Infrastructure Investment Trust (InvIT) sponsored by NDR Warehousing Pvt. has invested $75 million (Rs. 630 crore).

This SLB invested in local local currency is the first by Warehousing InvIT in India. The funding aims to support the expansion of NDR InvIT’s warehousing operations, enhance infrastructure quality and promote sustainable practices. It will also facilitate EDGE certification – an international green building certification system by the IFC – of facilities in existing use, reducing greenhouse gas emissions and reducing water consumption.

“This partnership with IFC underscores our commitment to drive innovation, sustainability and economic growth in India’s logistics sector. By adopting global standards like EDGE certification and focusing on resource-efficient operations, we aim to not only meet the growing demand for high-quality warehousing, but also contribute meaningfully to India’s climate goals,” said Amritesh Reddy.

With the rapid expansion of e-commerce and manufacturing, the Indian warehousing sector is poised for significant growth, with warehouse space expected to grow from 300 Mn sq ft in FY23 to 500 Mn sq ft by 2030, according to industry estimates.

“India’s warehousing sector is critical to economic growth, supporting e-commerce, manufacturing and seamless movement of goods across industries. As the demand for efficient warehousing solutions continues to grow, we are delighted to partner with NDR InvIT Trust to issue their first listed bond—India’s first sustainability-linked bond infrastructure investment trust. The initiative aims to strengthen market competitiveness, attract global capital and accelerate growth in this important sector,” said Imad Fakhouri, IFC’s Regional Director for South Asia.

Additionally, IFC will provide technical support to help InvIT achieve ESG goals, including EDGE (Excellence in Design for Greater Efficiency) certification for their warehouse assets. IFC will also help integrate gender-integrated work practices through the India Gender Collaborative, an IFC-led peer learning initiative for the private sector.

The IFC – a member of the World Bank Group – is the largest global development organization focusing on the private sector in emerging markets. In fiscal year 2024, the IFC pledged $56 billion to private companies and financial institutions in developing countries.

NDR InvIT Trust is the first ‘Perpetual Warehousing and Industrial Parks’ InvIT to be listed on the Indian Stock Exchange (NSE). The Trust’s AUM is currently 16.99 mn sqft spread across 13 cities, 33 industrial parks, over 50 warehouses.