Indospace COVID-19 Debt

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Indospace Logistics Parks III LP (the “fund” or “ILP III”) a US$580 million 2018 vintage fund for developing logistics and industrial parks across India. The fund is managed by Indospace Capital Asia Pte Limited and its Indian affiliate Indospace Capital Advisors Private Ltd., together referred to as “Indospace” or the “company”.  Indospace develops and operates warehousing and industrial property assets in India through various special purpose vehicles (“SPV”). The proposed IFC investment is a senior secured loan of up to INR 5,500 million (equivalent to US$75 million) to select SPVs of the fund. The proposed investment will provide Indospace with long-term finance during COVID-19 pandemic to continue investing and developing select projects envisaged under the fund over the next 2 years (the “projects”). IFC funding to select projects will be based on certain pre-agreed environmental and social (E&S) eligibility criteria such as: 1) completion of land acquisition and clear documentation that the project does not result in a) significant involuntary resettlement, b) risk of adverse impacts on lands to which ethnic minorities maintain collective attachment, c) significant risks to, or impacts on, the environment including biodiversity; 2) receipt of applicable E&S related regulatory approvals and permits; and 3) projects shall not allow industrial activities or hazardous material storage that are classified as Category A or B type as per India's EIA Notification, 2006. The fund is an existing portfolio client of IFC and the previous investment has been disclosed at: https://disclosures.ifc.org/#/projectDetail/SII/40509. Environmental and Social (E&S) performance of the existing investment has been satisfactory based on IFC’s monitoring to date.