Embassy REIT receives Green Loan Certification for Rs. 730 crores Debt from Climate Bonds Initiative

Embassy Office Parks REIT (NSE: EMBASSY / BSE: 542602) ('Embassy REIT'), India's first listed REIT and the largest office REIT in Asia by area, today announced that it has received a green loan certification for ₹730 crores of bank loans from Axis Bank. With this, Embassy REIT has become the first organization in the Indian real estate sector to receive a green loan certification from Climate Bonds Initiative, an investor-focused international not-for-profit organization working to mobilize global capital for climate action towards a low carbon and climate resilient economy.

Michael Holland, Chief Executive Officer of Embassy REIT, said, "We are delighted to receive this certification from Climate Bonds Initiative, recognizing our sustainability efforts focused on increasing our renewable energy share to drive our net zero 2040 commitment. We are happy to report that with this certification, we have secured cumulative sustainable financing of over ₹2,170 crores, much ahead of our FY2024 target of ₹1,000 crores. With this, around 50% of our total SPV-level debt is now certified as green. We will continue to work towards our sustainability vision by scaling up our ongoing ESG programs and commitments."

In October 2021, Embassy REIT raised SPV-level debt of ₹650 crores from Axis Bank which was used to refinance a construction loan for its 100 MW solar project in Bellary, Karnataka. In February 2022, an additional loan of ₹80 crores was secured for the ongoing construction of one of Asia's largest solar rooftop projects of over 20 MW scale across pan-India properties of Embassy REIT. These two loans have now been certified as green loans, thereby enhancing Embassy REIT's cumulative sustainable finance portfolio to over ₹2,170 crores.

Rajiv Anand, Deputy Managing Director of Axis Bank, said, "We are delighted to support Embassy REIT as a financing partner in this significant transaction and be a part of their ESG journey. We congratulate Embassy REIT in taking a leadership position in the Indian real estate sector by expanding their sustainability strategy to their capital structure. Axis Bank is increasingly committed towards financing sustainable portfolios by partnering on such high-impact ESG initiatives."

Sandeep Bhattacharya, India Project Manager of Climate Bonds Initiative, said, "Climate Bonds Initiative is privileged to be associated with these green loan transactions. These transactions should inspire more players in the real estate sector towards environmental consciousness and contribute substantially to the net zero targets of the country as announced by the Prime Minister at COP26."

Shares of Embassy Office Parks REIT was last trading in BSE at Rs. 361.40 as compared to the previous close of Rs. 377.44. The total number of shares traded during the day was 25713 in over 1104 trades.

The stock hit an intraday high of Rs. 380.59 and intraday low of 353.20. The net turnover during the day was Rs. 9339708.00.

Source : Equity Bulls

Keywords

EmbassyOfficeParks REIT GreenLoanCertification