International Finance Corporation (IFC), a World Bank Group member, has invested $75 million (₹630 crore) in an INR-denominated sustainability-linked bond (SLB) issued by NDR InvIT, an infrastructure investment trust by NDR Warehousing. This is the first SLB issue by any InvIT in India, aimed at supporting sustainable warehousing and resource-efficient growth in the logistics sector.

The company did not disclose specific sustainability plans, or the exact allocation of funds raised through this SLB. However, the trust plans to use the proceeds to expand its warehousing operations and enhance infrastructure quality.

“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,” Amrutesh Reddy, director, NDR InvIT Managers said in an official statement.

The rapid growth of quick commerce and manufacturing in India has fuelled the demand for warehousing, which is projected to reach 500 million square feet by 2030. Addressing challenges like outdated infrastructure and rising costs is crucial for improving efficiency and meeting the evolving needs of India’s supply chains.

Additionally, the World Bank’s private sector arm will also provide technical support to help the InvIT achieve Environmental and Social Governance targets including EDGE (Excellence in Design for Greater Efficiencies) certification for their warehouse assets.

Sustainability-linked bonds (SLBs) are forward-looking debt instruments that tie financial terms to the issuer's achievement of specific environmental or sustainability targets, without restricting the use of proceeds to particular projects like it is in green bonds.

In India, the SLB market is expanding, with notable issues including UltraTech Cement's $400 million SLB in 2021, the country's first. In June 2024, Mindspace Business Parks REIT issued SLBs worth ₹650 crore, becoming the first Indian REIT to do so.