International Finance Corporation (IFC) has invested $75 million, or about Rs 630 crore, in sustainability linked bonds (SLB) issued by NDR InvIT, an infrastructure investment trust (InvIT) sponsored by NDR Warehousing Pvt Ltd.
The SLB, in domestic currency, is the first by a warehousing InvIT in India.
The funding aims to support 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 IFC — of existing in-use facilities by reducing greenhouse gas emissions and lowering water consumption.
“This partnership with IFC underscores our commitment to driving innovation, sustainability and economic growth in India’s logistics sector,” said Amrutesh Reddy, director at NDR InvIT Managers. “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.”With the rapid expansion of ecommerce and manufacturing, the Indian warehousing sector is poised for substantial growth, with warehouse space expected to increase from 300 million square feet in FY23 to 500 million sq ft by 2030, according to industry estimates.
“India’s warehousing sector is crucial for economic growth, supporting ecommerce, manufacturing and the seamless movement of goods across industries. 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,” said Imad Fakhoury, IFC’s regional director for South Asia.
IFC will provide technical support to help the InvIT achieve ESG targets including EDGE (Excellence in Design for Greater Efficiencies) certification for their warehouse assets. IFC will also assist in integrating gender-inclusive work practices through the India gender collaborative, an IFC-led peer learning initiative for the private sector.
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. In fiscal year 2024, IFC committed $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 an Indian stock exchange (NSE). The trust’s AUM currently at 16.99 million sq ft is spread across 13 cities, 33 industrial parks, with over 50 warehouses.
