Singapore-listed CapitaLand India Trust, the first Indian real estate trust in Asia, has secured a sustainability-linked loan (SLL) amounting to S$200 million (US$148 million) from the International Finance Corporation (IFC).

This brings CLINT’s sustainable finance to S$1.16 billion, or 79% of its total loans, reflecting the firm’s commitment to achieving net zero.

The proceeds of the SLL will be used to refinance CLINT’s existing revolving credit facilities, reducing the firm’s financing cost and further diversifying its funding sources.

CLINT has selected two key performance indicators (KPIs) for this SLL. One is reducing the absolute greenhouse gas emissions of its IT business park portfolio as of December 31 2023 by 40.5% from the baseline year of 2019 during the five-year loan term. The other one is obtaining Excellence in Design for Greater Efficiencies (EDGE) certification for three selected IT business parks ‒ International Tech Park Chennai, CyberVale, and aVance Pune ‒ by 2026.

“Tying our sustainability performance with our financing demonstrates CLINT’s commitment to responsible growth, as we work towards achieving net-zero carbon emissions for Scope 1 and 2 by 2050,” says Sanjeev Dasgupta, chief executive officer of CapitaLand India Trust Management, CLINT’s trustee and manager.

“The SLL from IFC not only reflects CLINT’s disciplined capital management, but also aims to build trust among our stakeholders by providing a credible measurement of our progress in decarbonization. Guided by our sponsor CapitaLand Investment’s 2030 Sustainability Master Plan, CLINT is on track to fulfilling the requirements of the loan.”

Imad Fakhoury, IFC’s regional director for South Asia, adds: “Our investment will support the decarbonization of a portfolio of business parks through renewable energy and reduction in energy consumption, aligned with CLINT’s net-zero targets. We expect the CLINT example to have a cascading positive impact on the sector, enabling the greening of operational, in-use buildings.”

Photo: CLINT's International Tech Park Chennai.