IFC and NDR InvIT Launch India’s First Sustainability-Linked Bond for Warehousing Sector

$75 Million Investment to Drive Sustainable Warehousing, Boost Logistics Efficiency, and Advance Climate Goals.

In a groundbreaking move for India’s warehousing and logistics sector, International Finance Corporation (IFC) has invested $75 million (INR 6,300 million) in a Sustainability-Linked Bond (SLB) issued by NDR InvIT, an Infrastructure Investment Trust sponsored by NDR Warehousing Private Limited. This SLB, the first of its kind by a warehousing InvIT in India, and the inaugural SLB issuance by any InvIT in the country, underscores a significant milestone in sustainable investment.

The funds raised through the SLB will enable:

Expansion of NDR InvIT’s warehousing operations.

Achievement of EDGE (Excellence in Design for Greater Efficiencies) Certification, an internationally recognized green building standard by IFC.

Reduction in greenhouse gas emissions and water consumption at warehouse facilities.

Enhanced infrastructure quality to meet the demands of a growing supply chain ecosystem.

Catalyzing Growth in India’s Warehousing Sector

India’s warehousing and logistics sector is witnessing rapid growth, fueled by the expansion of e-commerce and manufacturing. The country’s warehouse space is projected to grow from 300 million square feet in FY23 to 500 million square feet by 2030, presenting a unique opportunity to modernize the sector and incorporate sustainable practices.

This investment aims to address challenges such as outdated infrastructure and rising costs while fostering resource-efficient growth. Additionally, it seeks to inspire other warehouse developers to adopt sustainability measures, strengthening India’s commitment to achieving its climate targets.

Leaders’ Perspectives

Amrutesh Reddy, Director of NDR InvIT Managers, highlighted the significance of this milestone: “We are proud to issue India’s first sustainability-linked bond by an InvIT, setting a new benchmark for sustainable investments. This partnership with IFC reflects our dedication to innovation and sustainability while supporting the growing demand for quality warehousing solutions. By integrating EDGE Certification and resource-efficient operations, we are aligning with India’s climate goals and driving economic growth.”

IFC’s Regional Director for South Asia, Imad Fakhoury, emphasized the transformative potential of this collaboration: “India’s warehousing sector is pivotal for economic growth, supporting e-commerce, manufacturing, and seamless goods movement across industries. This SLB issuance is not only a step toward strengthening market competitiveness and attracting global capital but also a commitment to shaping a sustainable future for India’s infrastructure. By championing green solutions, we aim to build a robust and resilient logistics sector that aligns with India’s climate ambitions.”

Technical Support and Gender Inclusion

Beyond financial backing, IFC will provide technical support to NDR InvIT to:

• Achieve Environmental and Social Governance (ESG) targets through EDGE Certification.
• Integrate gender-inclusive work practices via the India Gender Collaborative, a peer-learning initiative led by IFC to promote equitable workplace environments in the private sector.

Strengthening India’s Climate Commitments

This SLB initiative positions NDR InvIT as a trailblazer in the adoption of sustainable practices in the warehousing sector. By leveraging global benchmarks, innovative financing models, and technical expertise, the collaboration sets the stage for a more sustainable, resilient, and competitive logistics sector in India, fostering long-term economic growth while contributing significantly to national and global climate goals.