The International Finance Corporation (IFC) has invested USD 75 million in NDR InvIT Trust, marking India's first-ever Sustainability-Linked Bond (SLB) issuance by an Infrastructure Investment Trust (InvIT). The funds will expand NDR's warehousing operations, achieve EDGE Certification for green building standards, and reduce greenhouse gas emissions and water consumption. With warehousing space projected to grow from 300 million sq ft in FY23 to 500 million sq ft by 2030, the initiative sets a benchmark for sustainable infrastructure development in India. IFC's support includes ESG target achievement and gender-inclusive practices, aligning with India's climate and economic goals.
The International Finance Corporation (IFC) has taken a significant step towards transforming India's warehousing and logistics sector by anchoring the country's first-ever Sustainability-Linked Bond (SLB) issued by NDR InvIT Trust. This USD 75 million investment marks a milestone as the first SLB issuance by any Infrastructure Investment Trust (InvIT) in India, underscoring a commitment to resource-efficient growth and high-quality infrastructure development.
NDR InvIT Trust, sponsored by NDR Warehousing Private Limited, aims to channel the funds into expanding its operations, enhancing infrastructure, and integrating sustainable practices. The investment will enable existing warehouse facilities to achieve EDGE Certification, an international green building standard introduced by IFC. By adopting these standards, NDR InvIT intends to significantly reduce greenhouse gas emissions and water consumption.
The warehousing and logistics sector in India is witnessing a rapid surge, driven by the growth of e-commerce and manufacturing. Warehouse space is projected to increase from 300 million square feet in FY23 to 500 million square feet by 2030. This exponential expansion presents an opportunity to modernize India?s warehousing ecosystem, making it not only efficient but also environmentally sustainable. IFC?s investment is set to inspire other warehouse developers and operators to adopt similar climate-conscious strategies.
Amrutesh Reddy, Director of NDR InvIT Managers, highlighted the significance of this groundbreaking initiative. He shared that issuing India's first SLB by an InvIT sets a new standard for sustainable investments. Reddy explained that the partnership with IFC highlights the company's commitment to innovation, sustainability, and economic growth. By adopting global standards like EDGE Certification and focusing on resource efficiency, the company aims to meet demand while contributing to India's climate goals.
Imad Fakhoury, IFC's Regional Director for South Asia, emphasised the importance of the warehousing sector in supporting India's economic growth. He remarked that the partnership strengthens market competitiveness and attracts global capital. Fakhoury noted that by championing green solutions, they are paving the way for a robust, resilient logistics sector and helping shape India's sustainable infrastructure future.
Beyond financial support, IFC will assist NDR InvIT in achieving Environmental and Social Governance (ESG) targets and promoting gender-inclusive work practices through its India Gender Collaborative initiative. This peer-learning initiative is designed to foster inclusivity across the private sector, further enriching the sustainability narrative of the project.
With this pioneering SLB, India's warehousing sector is set for a transformative journey. By addressing critical challenges such as aging infrastructure and rising costs, it can meet the evolving demands of modern supply chains while fostering a sustainable and inclusive growth trajectory.
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