Warehousing plays a pivotal role in the supply chains of many industries, including e-commerce, which has seen rapid growth in recent years in India.
IFC invested in a sustainability-linked bond issued by NDR InvIT, the first by any warehousing infrastructure investment trust (InvIT) in the country. Through this issuance, NDR InvIT aims to achieve a green building certification and lower both its greenhouse gas (GHG) emissions and its water consumption.
Residential and commercial buildings are significant contributors to GHG emissions in India. Within thematic bonds, green financing in India is largely concentrated in the power sector, while sustainability-linked financing is utilised by hard-to-abate sectors such as steel and cement. Will this issuance encourage the building sector to consider more sustainable capital-raising efforts?