DME Development Limited (DMEDL), a fully owned subsidiary of the National Highways Authority of India (NHAI), has successfully raised Rs. 775 Crore through a groundbreaking issuance of ‘Green Bonds’ in the roads and highways sector.
NHAI Chairman Shri Santosh Kumar Yadav, IAS, expressed his satisfaction with the outcome of the ‘Green Bonds’ issue, stating, “I am very pleased with the encouraging response and would like to thank the investors who have supported such a unique offering. This first-of-its-kind initiative in the roads and highways sector will set a benchmark and foster participation from a diverse group of investors.”
Shri NRVVMK Rajendra Kumar, Member (Finance) of NHAI and Chairman of DMEDL, commented, “The strong demand for Green Bonds and the successful issuance reflect investors’ confidence in DMEDL and NHAI. This demonstrates our commitment to balancing infrastructure growth with environmental sustainability for a more holistic development.”
The issue, conducted under a closed bidding system, had an aggregate size of Rs. 775 Crore, with a base issue size of Rs. 500 Crore and a green-shoe option to retain oversubscription up to Rs. 275 Crore. The bonds offer a yield of 7.23% per annum.
The proceeds from this ‘Green Bond’ issuance will be allocated toward various sustainable initiatives, including avenue and median plantation, construction of animal underpasses, natural stormwater drainage systems, solar-powered streetlights, waste recycling and reuse, and rainwater harvesting.
Incorporated in August 2020, DME Development Ltd. is a wholly owned Special Purpose Vehicle (SPV) of NHAI responsible for the financing, construction, and operation of the Delhi-Mumbai Greenfield Expressway. DMEDL has earned an AAA rating from CRISIL, CARE, and India Rating. The company aims to raise approximately Rs. 48,000 Crore through loans and bonds from banks and financial markets, having already secured around Rs. 43,000 Crore for the implementation of the flagship Delhi-Mumbai Expressway project.
