Brookfield India REIT Secures Rs2,000 Crore through Sustainability-Linked Bonds

Brookfield India Real Estate Trust has raised ₹2,000 crore through its maiden sustainability-linked bonds, with the International Finance Corporation (IFC) as an anchor investor. The listed REIT will pay a 7.06% quarterly coupon on the bonds, which have a tenure of five years.

Other key subscribers include domestic and international institutional investors. This is the second fundraise by Brookfield India REIT in the last two weeks through equity and debt issuances. Earlier this month, the REIT raised ₹3,500 crore through a qualified institutional placement (QIP) from domestic and global investors.

Last month, Brookfield India REIT entered into an agreement to acquire Ecoworld, a 7.7 million sq ft office campus spread over 48 acres in Bengaluru, for ₹13,125 crore. The REIT plans to use part of the QIP proceeds to finance this acquisition, which is the largest announced by an REIT in India.

With the latest bond issue, the REIT has raised a total ₹10,000 crore in the past 12 months. These funds are expected to be utilized for future growth and expansion plans. The move comes as Indian REITs increasingly use bonds to finance growth and acquisitions, diversifying their capital structure amid robust office leasing demand.

Brookfield Asset Management recently announced its plan to invest $1 billion to develop Asia’s largest global capability centre (GCC) on a 6-acre land parcel in Mumbai’s Powai suburb with a total leasable area of two million sq ft. This facility will be developed for a multinational bank with a total lease tenure of 20 years. The lease deal for this facility is likely to be signed with US banking major JP Morgan, said persons with direct knowledge of the development.

Brookfield declined to comment. Brookfield is one of the largest office owners and operators in India with 55 million sq ft across seven cities in India. Brookfield India REIT is India’s only 100% institutionally managed office REIT, managing 10 grade-A assets located in key markets of India including Mumbai, Delhi, Gurgaon, Noida, and Kolkata.

The REIT’s portfolio consists of 29.1 million sq ft of total leasable area, comprising 24.6 million sq ft of operating area, 0.6 million sq ft of under construction area, and 3.9 million sq ft of future development potential.