IFC Invests Rs 630 Crore in NDR InvIT to Boost Sustainable Warehousing
The International Finance Corporation (IFC) has made a strategic investment of Rs 630 crore (USD 75 million) in NDR InvIT’s first-ever Sustainability Linked Bond (SLB), marking a significant step in promoting sustainable warehousing infrastructure in India. NDR InvIT, sponsored by NDR Warehousing Private Limited, aims to use this investment to improve the climate credentials of existing facilities and expand its warehousing and logistics business.
This SLB is the first of its kind for a warehousing infrastructure investment trust (InvIT) in India. The bond will facilitate the EDGE (Excellence in Design for Greater Efficiencies) certification for NDR InvIT’s warehouses, a global green building certification system by IFC. It aims to reduce greenhouse gas emissions, lower water consumption, and promote environmental sustainability across the warehousing sector.
The investment comes at a crucial time, as India’s warehousing sector is expected to experience significant growth, driven by the expansion of e-commerce and manufacturing. Warehouse space in the country is projected to increase from 300 million square feet in FY23 to 500 million square feet by 2030. This growth presents an opportunity for sustainable development in the sector, with IFC’s involvement encouraging other warehouse developers to adopt eco-friendly practices and improve the climate credentials of their properties. Imad Fakhoury, IFC’s Regional Director for South Asia, highlighted the importance of the partnership, stating that the initiative will strengthen market competitiveness, attract global capital, and drive growth in this vital sector. Amrutesh Reddy, Director of NDR InvIT Managers, also emphasized the collaboration’s focus on innovation, sustainability, and economic development in India’s logistics industry. In addition to the financial support, IFC will provide technical assistance to help NDR InvIT meet its Environmental and Social Governance (ESG) targets, further enhancing the sustainability of the Indian warehousing infrastructure.
