NEW DELHI: Nexus Select Trust has raised ₹7 billion through a 10-year sustainability-linked bond (SLB) issuance, anchored by the International Finance Corporation (IFC), a member of the World Bank Group.
The issuance includes a sustainability-linked bond along with a floating-rate tranche of ₹2 billion, with IFC committing ₹2.5 billion as the anchor investor. The bonds have a tenor of about 10 years and are benchmarked to the three-month MIBOR OIS for the floating-rate portion.
Proceeds from the bond issuance will be used largely for refinancing existing debt, which is expected to result in annualised interest savings of around 90 basis points, translating into approximately ₹60 million in savings.
According to the company, the bond is linked to sustainability performance targets, including achieving net-zero emissions by 2030 and adopting the EDGE green building certification framework for future acquisitions.
Rajesh Deo, chief financial officer, Nexus Select Trust, said the issuance marks the first instance in the sector of a 10-year sustainability-linked bond with a floating-rate structure tied to the three-month MIBOR OIS.
Imad N. Fakhoury, regional division director for South Asia, IFC, said the investment supports improved energy efficiency across the trust’s portfolio and advances its sustainability objectives over the medium term.
The transaction was advised by Trilegal as legal counsel.
