IFC, a member of the World Bank Group, has invested $75 million (₹630 crore) in a domestic sustainability-linked bond (SLB) issued by NDR InvIT, an Infrastructure Investment Trust (InvIT) sponsored by NDR Warehousing Private Ltd.
This SLB is the first by a warehousing InvIT in India and marks the first SLB issuance by any InvIT in the country.
Commenting on the partnership, Amrutesh Reddy, Director, NDR InvIT Managers said, “We are thrilled to issue India’s first sustainability-linked bond by an InvIT setting a new benchmark for sustainable investments.
This partnership with IFC underscores our commitment to driving innovation, sustainability, and economic growth in India’s logistics sector”.
This strategic investment aims to enhance high-quality, sustainable warehousing infrastructure and drive resource-efficient growth in India’s warehousing and logistics sector.
Imad Fakhoury, IFC’s Regional Director for South Asia, said that India’s warehousing sector is crucial for economic growth,supporting e-commerce, 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.
The initiative aims to strengthen market competitiveness, attract global capital, and spur growth in this critical sector,” Fakhoury said. “By championing green solutions, we’re paving the way for a more robust, resilient, and sustainable logistics sector, helping shape the future of India’s infrastructure while contributing to India’s climate goals.”
Expansion support
The funding aims to support the expansion of NDR InvITs warehousing operations, enhance infrastructure quality, and promote sustainable practices.
It will facilitate EDGE Certification, an international green building certification system by IFC — of existing in use facilities, reduce greenhouse gas emissions and lower water consumption.
The SLB will also support raising capital for the expansion of NDR’s warehousing and logistics business, encouraging other warehouse developers and operators in India to enhance the climate credentials of their existing warehouse stock.
With the rapid expansion of e-commerce 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 square feet by 2030.
This growth presents an opportunity to invest in modern, sustainable warehouses and foster stronger collaboration with the private sector.
By addressing challenges such as dated infrastructure and rising costs, the sector can improve efficiency and meet the evolving demands of India’s supply chains.
“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”, Reddy said.
Additionally, IFC will provide technical support to help the InvIT achieve Environmental and Social Governance targetsincluding EDGE (Excellence in Design for Greater Efficiencies) Certification for their warehouse assets. IFC will also assist in integrating gender-inclusive work practicesthrough the India Gender Collaborative, an IFC-led peer learning initiative for the private sector.