Brookfield India REIT Raises ₹2,000 Crore Through Sustainability-Linked Bonds, Sets New Market Benchmark

Brookfield India Real Estate Trust has achieved a major milestone in India’s real estate capital markets by successfully completing the issuance of approximately ₹2,000 crore worth of sustainability-linked bonds. Anchored by International Finance Corporation, a member of the World Bank Group, the issuance attracted strong participation from a diverse group of marquee institutional investors, underlining growing confidence in ESG-led financing.

This transaction is the largest sustainability-linked bond issuance by a REIT in India to date and is being viewed as a new benchmark for the sector. It highlights the increasing maturity of India’s capital markets, where investors are actively backing issuers that align financial performance with measurable sustainability outcomes.

The five-year bonds will see the proceeds deployed towards providing shareholder loans to select REIT entities, along with meeting general corporate requirements. The issuance has received the highest credit ratings, with Crisil AAA/Stable from Crisil Ratings and AAA/Stable from ICRA, reflecting the trust’s strong balance sheet and stable cash flow profile. Global financial major Barclays acted as the arranger for the transaction, while Shardul Amarchand Mangaldas & Co. served as legal counsel.

What sets this issuance apart is its direct linkage to clearly defined sustainability performance indicators. The bonds are structured around ambitious targets related to renewable energy adoption and water stewardship, encouraging higher portfolio-wide renewable energy usage and improved water recycling and efficiency. These targets are aligned with the ICMA Sustainability-Linked Bond Principles and SEBI’s ESG debt framework.

The issuance falls under Brookfield India REIT’s Sustainability-Linked Finance Framework, which has received an independent Second Party Opinion from Bureau Veritas, validating the relevance and ambition of the ESG metrics.

Under this framework, BIRET and its subsidiaries can continue to explore sustainability-linked instruments in the future.
Commenting on the development, BIRET management said the strong investor response reflects confidence in its long-term strategy to achieve net-zero operations by 2040 or earlier.

IFC also noted that linking capital to sustainability performance supports resilient urban development, efficient resource use, and the growth of global capability centres in India.