Nexus Select Trust Raises Rs 700 Crore in ESG-Linked Bond Issue

Nexus Select Trust, India’s first listed retail Real Estate Investment Trust (REIT), has raised ₹700 crore through a 10-year sustainability-linked bond. The fundraise strengthens the REIT’s long-term funding position.

The bond issue was anchored by the International Finance Corporation. IFC is the private-sector arm of the World Bank Group. Its participation reflects strong confidence in India’s organised retail market and the REIT structure.

The bond includes both fixed and floating rate tranches. These are aligned with current market benchmarks.

The sustainability-linked structure connects borrowing costs with clear environmental targets. One key goal is to achieve net-zero operational emissions by 2030. Another goal is to ensure future retail asset acquisitions meet recognised green building standards such as EDGE certification. This links long-term funding with measurable sustainability outcomes.

The funds raised will be used mainly to refinance existing debt. This is expected to reduce interest costs. It will also extend the maturity profile of borrowings. The move is aimed at improving cash flow visibility and balance sheet stability.

Nexus Select Trust owns a diversified portfolio of retail assets across major Indian cities. The portfolio includes 19 Grade-A shopping malls. It also includes select hotel and office assets within mixed-use developments. These assets are located in key urban consumption markets. Occupancy levels remain stable.

India’s organised retail sector has shown steady improvement in recent quarters. Footfalls have increased. Tenant sales have improved. Rental collections remain consistent. These trends have supported asset performance.

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