New Delhi, India, December 20, 2024—In a strategic move to boost high-quality and sustainable warehousing infrastructure and promote resource-efficient growth in the warehousing and logistics sector, IFC has invested $75 million (INR 6,300 million) in a domestic local currency (INR) Sustainability Linked Bond (SLB) issued by NDR InvIT, an Infrastructure Investment Trust (InvIT) sponsored by NDR Warehousing Private Limited. This SLB is the first by a warehousing InvIT in India and marks the first SLB issuance by any InvIT in the country.
The funding aims to support the expansion of NDR InvIT’s 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.
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. 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.”
“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,” said Imad Fakhoury, IFC’s Regional Director for South Asia. “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.”
Additionally, IFC will 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. 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.
