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The first REIT-level Green Bond issuance in India has been announced by Mindspace Business Parks REIT, which is the owner and developer of a high-quality Grade A office properties. With a tenor of three years and thirty days and a fixed quarterly yield of 8.02% per annum payable quarterly, Mindspace REIT raised INR 5.5 billion through this issue. The money raised from this fund-raise will be used to refinance loans that one of the Asset SPVs took out to finance the permitted green projects.
According to CRISIL Ratings and ICRA, the issuance is rated [ICRA] AAA(Stable) and [CRISIL] AAA/Stable. The issue has only one arranger; Trust Investment Advisors Private Ltd. Leading insurers, mutual funds, and other investor classes all participated in the issuance. The legal counsel for the issuance is Shardul Amarchand Mangaldas & Co.
The Green Financing framework is built around four essential pillars that are in line with the Green Bond Principles (GBP) established by the International Capital Markets Association ("ICMA"): 1) Usage of Proceeds 2) Project Assessment and Selection 3) Proceeds Management 4) Allocation and Impact Reporting. The framework outlines useful categories of qualified end uses including energy efficiency, renewable energy and green buildings or projects for which money from green financing can be used. The Green Financing framework and its compliance with pertinent industry standards in this case was assessed and certified by Morningstar Sustainalytics.
APAC Corporate Solutions is a division of Morningstar Sustainalytics, a leading provider of environmental, social, and governance (ESG) research and ratings. APAC Corporate Solutions specializes in providing ESG solutions for companies operating in the Asia Pacific region. They offer a range of services, including ESG assessments, benchmarking, and engagement strategies to help businesses improve their sustainability performance and effectively manage ESG risks.
Mindspace Business Parks REIT is one of the largest and fastest-growing real estate investment trusts in India. It is a leading provider of high-quality office space, catering to a diverse set of multinational and domestic tenants across various industries. The REIT's portfolio comprises 30 million square feet of commercial space spread across four major cities in India - Mumbai, Hyderabad, Pune, and Chennai. Mindspace Business Parks REIT aims to provide investors with stable and predictable returns through long-term leases and rental escalations, as well as potential capital appreciation through strategic acquisitions and developments.
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