Project Details
Project
Mindspace Business Parks REIT Group Green Financing Framework Second-Party Opinion (2023)
Client
Mindspace Business Parks REIT Group
Project Type
Green Bond/Loan
Industry Group
Real Estate
Use of Proceeds
Renewable energy; Energy efficiency; Clean transport; Green buildings; Pollution prevention and control; Natural resources/land use management; Climate change adaptation;
Location
India
Evaluation Date
Feb 2023
Evaluation Summary
Sustainalytics is of the opinion that the Mindspace Business Parks REIT Group Green Financing Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2021. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds - Green Buildings/Projects, Energy Efficiency, Sustainable Water and Wastewater Management, Clean Transportation, Renewable Energy, Pollution and Waste Prevention or Control/ Sustainable Waste Management, Biodiversity and Conservation, and Adaptability and Resilience to Climate Change - are aligned with those recognized by the Green Bond Principles 2021. Sustainalytics considers that investments in the eligible categories are expected to lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically SDGs 6, 7, 9, 11, 12 and 15.
PROJECT EVALUATION AND SELECTION
Mindspace Business Parks REIT Group has in place an ESG Committee that will be responsible for project evaluation in accordance with the eligibility criteria of the Framework. The ESG Committee comprises managers and representatives from various departments, such as leasing, asset management, projects, corporate finance, investor relations and compliance. Mindspace Business Parks REIT Group has processes in place to identify and manage ESG risks associated with the eligible projects. Sustainalytics considers the risk management systems to be adequate and the project selection process to be in line with market practice.
MANAGEMENT OF PROCEEDS
Mindspace Business Parks REIT Group’s Accounts and Treasury team will be responsible for the management of proceeds and will allocate net proceeds within 36 months of issuance. The proceeds will be tracked using an internal tracking system. Pending full allocation, unallocated proceeds will be temporarily held in cash or short-term liquid instruments, such as mutual funds, demand deposits and time deposits. This process is in line with market practice.
REPORTING
Mindspace Business Parks REIT Group intends to report on allocation of proceeds, quarterly and the corresponding impact, annually directly to its debenture trustees, stock exchanges or any other regulatory authority until full allocation. Allocation reporting will include details such as the description of projects financed by the proceeds, the share of unallocated proceeds and the share of financing versus refinancing. In addition, Mindspace Business Parks REIT Group is committed to reporting on relevant impact metrics. Sustainalytics views Mindspace Business Parks REIT Group’s allocation and impact reporting as aligned with market practice.