Warehouse developer IndoSpace Core has raised Rs 1,000 crore (around $132.7 million) in the form of a debt facility from multinational bank HSBC Holdings Plc, it said in a statement on Wednesday.
Indospace Core said in a statement it raised the capital under its new Green Finance Framework. It will use the proceeds to finance or refinance existing and certified green buildings.
IndoSpace Core is a joint venture between Everstone-backed Indospace, Canada Pension Plan and Investment Board (CPPIB) and global investment fund manager GLP.
HSBC also acted as IndoSpace’s sole green finance adviser, lender and account bank for the transaction.
Rajesh Jaggi, Everstone vice chairman for real estate, said the financing was the first deal of its kind in the organised warehousing segment in India.
“At IndoSpace, we are committed towards sustainable development and emphasize on strong corporate governance framework towards ESG [environmental, social and governance goals],” he said.
IndoSpace was set up by homegrown private equity firm Everstone in 2007. Everstone had initially tied up with the US-based logistics space provider Realterm. Currently, the platform is promoted by Everstone, Realterm and GLP.
Its current portfolio comprises over 36 million square feet of warehouses and industrial parks. The commercial real estate developer has so far committed over $3.2 billion to India, with some of its customers including IKEA, Amazon, Delhivery, DHL, Ericsson, Bosch and Aptiv.
In December 2018, Mumbai-based IndoSpace hit the final close of its third fund at $1.2 billion (around Rs 8,611 crore then). The fund was significantly oversubscribed on the back of strong investor demand, it had said at the time.
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