NEW DELHI: DME Development Ltd (DMEDL), a subsidiary of the National Highways Authority of India (NHAI), has successfully raised Rs775 crore through the issuance of green bonds, marking a first in the roads and highways sector, the Ministry of Road, Transport and Highways announced on Monday.
The proceeds from the green bonds will be utilized for eco-friendly initiatives, including avenue and median plantation, construction of animal underpasses, natural stormwater drainage, solar-powered streetlights, waste recycling, and rainwater harvesting.
New benchmark
“This pioneering green bond issuance for the road sector sets a new benchmark and is expected to attract a diverse investor base,” said NHAI Chairman Santosh Kumar Yadav.
N R V V M K Rajendra Kumar, Member (Finance) of NHAI and Chairman of DMEDL, highlighted the robust demand for the bonds, reflecting investor confidence in the entity’s commitment to sustainable infrastructure growth.
The Rs775 crore raised includes a base issue of Rs500 crore with a green-shoe option of Rs275 crore to accommodate oversubscription. The bonds carry an annual yield of 7.23 per cent.
DMEDL, incorporated in August 2020 as a wholly-owned special purpose vehicle (SPV) of NHAI, is tasked with financing, constructing, and operating the Delhi-Mumbai Greenfield Expressway. The company has already raised Rs43,000 crore of its targeted Rs48,000 crore for the project through loans and bonds.
