NHAI arm DMEDL raises Rs 775 crore through issuance of green bonds

DME Development Limited (DMEDL), an arm of NHAI, has raised Rs 775 crore through issuance of green bonds in roads and highways sector, an official statement said on Monday.

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 and reuse and rainwater harvesting, the statement said.

"DMEDL today successfully raised Rs 775 crore from the first of its kind issue of 'green bonds' in roads and highways sector," the Ministry of Road, Transport and Highways said.

 

NHAI Chairman Santosh Kumar Yadav said, "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."  N R V V M K Rajendra Kumar, Member (Finance), NHAI, and Chairman, DMEDL, 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."  The aggregate size of the issue was 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, with a yield at 7.23 per cent per annum.

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.

DMEDL aims to raise about Rs 48,000 crore from banks and financial market through loans and bonds and has successfully raised around Rs 43,000 crore for implementation of the flagship Delhi-Mumbai Expressway project.