New Delhi: The National Highways Authority of India (NHAI) on Monday said that its wholly owned subsidiary, DME Development Limited (DMEDL), has successfully raised Rs 775 crore from the first of its kind issue of ‘Green Bonds’ in roads and highways sector.
Held under a close bidding system, the aggregate total size of the issue was Rs 775 crores with a base issue size of Rs 500 crores and a green-shoe option to retain oversubscription up to Rs 275 crores, with a yield @ 7.23 percent p.a., NHAI said in an official statement.
The proceeds from the issue of ‘Green Bonds’ has been used for activities such as expenditure on avenue plantation, median plantation, construction of animal underpasses, natural stormwater drainage, streetlight on renewable energy (solar), waste recycling & reuse and rainwater harvesting.
Speaking on the successful issue of the ‘Green Bonds’ NHAI Chairman Santosh Kumar Yadav (IAS) said, “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 for the roads and highway sector will set a benchmark and encourage participation from a diverse set of investors”.
Commenting on the occasion NHAI's Member (Finance) and Chairman of DMEDL NRVVMK Rajendra Kumar said, “The robust demand for GREEN BONDS and successful issuance demonstrate the confidence of investors in DMEDL and NHAI and encouragement of our commitment to balance infrastructure growth and environment sustainability for a holistic development.”
Incorporated in August 2020, ‘DME Development Ltd.’ is a wholly owned Special Purpose Vehicle (SPV) of NHAI for financing, construction, and operation of the Delhi-Mumbai Greenfield Expressway and has received AAA rating from CRISIL, CARE and India Rating. DMEDL aims to raise about Rs 48,000 crore from banks & financial market through loans & bonds and has successfully raised around Rs 43,000 crore for implementation of the flagship Delhi – Mumbai Expressway project.
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