IndoSpace Core raises Rs 1000 crore green loan from HSBC

May 14, 2020: The industrial and logistics real estate provider, IndoSpace Core announced the closing of a Rs 1,000 crore green loan facility provided by The Hongkong and Shanghai Banking Corporation (HSBC).

IndoSpace Core
IndoSpace Core is a joint venture between real estate developer and warehousing & logistics player IndoSpace, investor Canada Pension Plan Investment Board, and global investment and fund manager GLP with 13 million square feet across 14 industrial and logistics parks in India. Promoted by Everstone Group, GLP and Realterm, IndoSpace continues to develop new facilities. Its customers include IKEA, Amazon, Nissan, DHL, DB Schenker, Delhivery, Steelcase, Ericsson, Bosch and Aptiv.

Largest warehouse financing
The debt facility is the largest portfolio financing seen in the logistics and warehousing space in India, covering 14 projects located in prime warehousing hubs of Pune, Chennai, Bangalore and Delhi – NCR. Proceeds from the debut green loan will be used towards the financing or refinancing of certified green projects. The green buildings have also achieved EDGE green building certification developed by the IFC, a member of the World Bank Group.

"IndoSpace Core has set a new benchmark in green financing in India with the facility being raised under its newly established Green Finance Framework which is rated ‘Medium Green’ by international independent reviewer CICERO Shades of Green. IndoSpace Core’s Green Finance Framework is the first-ever globally to have incorporated EDGE certified green buildings in the warehousing space being externally reviewed by CICERO Shades of Green. HSBC was IndoSpace Core’s Sole Green Finance Advisor, Sole Lender and Account Bank," says the release.

Rajesh Jaggi, vice chairman, real estate, Everstone Group said “On behalf of IndoSpace Core, we are excited to partner with a reputed global institution like HSBC, which brings significant added value and expertise to our overall capital structure. This deal is first of its kind in the organized warehousing space in India and it reinforces IndoSpace as a leader in this segment.”

“At IndoSpace, we are committed towards sustainable development and emphasize on strong corporate governance framework towards ESG. We are delighted to be awarded ‘Medium Green’ on our Green Finance Framework by CICERO Shades of Green, a renowned second opinion provider on green bond frameworks.”, Rajesh added.

Sunil M Shah, managing director, head of multinationals, South Asia, HSBC said “We are delighted to have advised IndoSpace Core on the establishment of their Green Finance Framework and to have supported their inaugural green loan transaction. We look forward to supporting more like-minded partners like IndoSpace Core in building a sustainable future.”

Harald Francke Lund, CEO and co-founder, CICERO Shades of Green said, “Applying a standard for embodied energy in building materials for its warehouses, in addition to energy efficiency and water efficiency, is a clear strength of IndoSpace Core’s Green Finance Framework.”