Advisor role assumed by JSA for Vertis Infrastructure Trust in the release of a ₹900 crore Sustainability-Linked Bond issue
JSA Advocates & Solicitors Assist in Largest Sustainability-Linked Bond Issuance by Indian Infrastructure Investment Trust
In a significant development, JSA Advocates & Solicitors provided legal advice to Vertis Infrastructure Trust for its private placement of ₹900 crore sustainability-linked bonds (SLBs). This marks the largest SLB issuance by an Indian Infrastructure Investment Trust (InvIT), reflecting a growing trend towards environmentally and socially responsible financing.
The private placement proceeds will be used to support TOT Bundle 16, a crucial 252 km highway corridor (NH 44) located in the State of Telangana. This project underscores Vertis Infrastructure Trust's focus on managing infrastructure assets.
The SLB debt securities are linked to predefined sustainability performance targets, aligning financial outcomes with environment, social, and governance (ESG) outcomes. These bonds mirror international best practices for sustainability-linked bonds, reinforcing Vertis Infrastructure Trust's commitment to ESG-linked financing.
The transaction was led by Karan Mitroo, Partner at JSA Advocates & Solicitors, supported by a team including Pragya Verma (Senior Associate), Jhalak Gupta (Associate), and Harsh Dugar (Associate). The team's role involved advising on legal aspects associated with the private placement of these bonds, ensuring compliance, and structuring according to market and regulatory norms.
SLBs are a type of debt security where the interest rate or other financial characteristics are linked to the issuer's performance against predefined sustainability objectives. In this case, the predefined sustainability performance targets link financial outcomes to environment, social, and governance outcomes.
This move towards sustainability-linked financing is a testament to the growing importance of ESG considerations in the financial sector. It also underscores the role that legal advisors like JSA Advocates & Solicitors play in facilitating such transitions by providing expert advice on complex legal matters.
[1] Business Standard, "JSA Advocates & Solicitors advises Vertis Infrastructure Trust on ₹900-cr sustainability-linked bonds," (https://www.business-standard.com/article/companies/jsa-advocates-solicitors-advises-vertis-infrastructure-trust-on-900-cr-sustainability-linked-bonds-122091500653_1.html)
[2] Financial Express, "Vertis Infrastructure Trust raises ₹900 crore through sustainability-linked bonds," (https://www.financialexpress.com/economy/vertis-infrastructure-trust-raises-900-crore-through-sustainability-linked-bonds/2418668/)
Science plays a crucial role in the development of environmental-science, which is integral to the creation of sustainability-linked bonds (SLBs). Financial analysts in the business sector may use scientific data to assess an organization's progress towards environmental, social, and governance (ESG) goals.
