DME Development Ltd (DMEDL), a wholly owned subsidiary of the National Highways Authority of India (NHAI), has successfully raised Rs 775 crore through its first-ever issuance of Green Bonds. This marks a significant milestone in the road and highway sector, setting a benchmark for future environmentally sustainable infrastructure financing.
The issue, which was held under a closed bidding system, had a base size of Rs 500 crore, with the option to retain oversubscription of up to Rs 275 crore. The bonds were issued at an annual yield of 7.23%. Santosh Kumar Yadav, Chairman of NHAI, expressed his satisfaction with the response from investors, noting that this pioneering initiative would encourage broader participation in the sector. The funds raised through this Green Bond issuance will be allocated for sustainable initiatives such as avenue and median plantation, construction of animal underpasses, natural stormwater drainage, solar-powered streetlights, waste recycling and reuse, and rainwater harvesting. These activities are designed to balance infrastructure development with environmental sustainability. Incorporated in August 2020, DME Development Ltd is the Special Purpose Vehicle (SPV) created to finance, construct, and operate the Delhi-Mumbai Greenfield Expressway. The company has already received AAA ratings from CRISIL, CARE, and India Ratings. It aims to raise around Rs 48,000 crore through loans and bonds, with Rs 43,000 crore already secured for the Delhi-Mumbai Expressway project.
