IFC Invests Rs 630 Crore in NDR InvIT to Promote Sustainable Warehousing in India.
International Finance Corporation, a member of the World Bank Group, has taken its first major stride to give a boost to sustainable infrastructure in India’s warehousing sector with its investment of USD 75 million or about Rs 630 crore in newly issued Sustainability Linked Bond, or SLB, of NDR InvIT. The strategic investment will focus on green warehouses and thus enhance the sustainability of logistics sector.
The first Infrastructure Investment Trust in India has occurred with NDR InvIT, sponsored by NDR Warehousing Private Limited raising a Sustainability Linked Bond or SLB for the sector of warehousing. With the intention of funding, a Sustainability Linked Bond is floated and is meant for EDGE Programme Certification of existing warehouse facilities, which is a Green building certification system supported by the International Finance Corporation. Reduce in greenhouses gas emissions. Water Consumption also has to come down. Environmental performances shall improve at every warehouse in the country.
IFC, with the commitment to match capital fund of a global development institution and investment by the International Bank for Reconstruction and Development is facilitating such huge difference-maker in India’s Indian warehousing sector. The funds raised will be utilized to enhance climate credentials for existing facilities and raise capital for the growth of NDR in the warehousing and logistics business. Modern, sustainable warehouse spaces, which are fast emerging as an important need, given the rapid growth of e-commerce and manufacturing in India, are also expected to emerge from this joint venture.
The Indian warehousing sector is expected to see huge growth in the near future. Warehouse space is going to increase from 300 million square feet in FY23 to 500 million square feet by 2030. Growth in this sector provides a significant opportunity for investment in modern, eco-friendly warehouses because this sector will become even more central to the success of e-commerce, manufacturing, and effortless logistics.
This investment further focuses on the importance of implementing green building practices in the warehousing sectors of the world to reduce the impacts of industrial infrastructure on the environment. Existing warehouse assets getting certified under edge will further set a new benchmark in the industry regarding the sustainability standards of a warehouse and increase the energy efficiency of a warehouse, making its environmental impacts less harmful.
Further into that, this further enhances market competitiveness within the sector of warehousing as more international capital continues being introduced into the system; growth continues. IFC’s investment signals a growing trend, at least about how sustainability represents and goes forth within development infrastructure, that is gaining ground in warehouses and the logistics sector among others of being fundamental economic growth factors.
Other support, more technically, NDR InvIT will receive ESG targets. About this, warehouse assets shall be EDGE certified, with their facilities operating in the global arena at standards with regard to being energy-using, using a lot less water, and basically sustainable on many general fronts.
This cooperation also represents a trend in the Indian warehousing industry that will further opt for sustainable and energy-efficient solutions. The demand for efficient warehousing solutions because of the rise in e-commerce and manufacturing activities, the sector is now even more pivotal to the overall economic development of India.
This is part of a far more comprehensive effort by IFC to make sustainability even more integral to the infrastructure development of India. Further expansion in the logistics sector in India is sure to prompt other developers and operators to join the bandwagon, incorporating green building practices that make a logistics network more sustainable and resilient.
Conclusion:Warehousing is critical for Indian growth because it ensures easy movement of goods across industries; thus, it facilitates sector growth through sectors like e-commerce and manufacturing. By way of strategic investment, IFC, along with NDR InvIT, looks to drive the expansion of India’s logistics sector even as sustainability is at the forefront of all development. This IFC-NDR InvIT partnership is a large step in the way forward for a sustainable infrastructure for India. And this investment, through the support of green certification of warehouses and encouragement of sustainable logistics facilities, will surely help in long-term benefits in both the environment and for the economy.
Source: International Finance Corporation (IFC) Press Release