DMEDL establishes Green Bonds for sustainable road projects

DMEDL, under NHAI, secured 775 crore in green bonds to prioritise sustainability in the significant Delhi-Mumbai Expressway project.

DME Development Limited (DMEDL), a wholly owned subsidiary of NHAI, successfully raised ₹ 775 crore through the first-ever offering of ‘Green Bonds’ in the roads and highways sector. Speaking on the successful issuance of the ‘Green Bonds’, NHAI Chairman Shri 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.”

Speaking on the occasion, Shri NRVVMK Rajendra Kumar, Member (Finance), NHAI & Chairman, DMEDL, states, “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 environmental sustainability for a holistic development.”

The overall amount of the offer was ₹ 775 crores, with a base issue size of ₹ 500 crores and a greenshoe option to retain oversubscription up to ₹ 275 crores, yielding 7.23 percent per annum.

The revenues from the issuance of ‘Green Bonds’ have been used to fund operations such as avenue and median plantation, animal underpass construction, natural stormwater drainage, streetlights powered by renewable energy (solar), waste recycling and reuse, and rainfall gathering.

‘DME Development Ltd.’, incorporated in August 2020, is NHAI’s wholly owned Special Purpose Vehicle (SPV) for the funding, building, and operation of the Delhi-Mumbai Greenfield Expressway and has AAA ratings from CRISIL, CARE, and India Rating. DMEDL seeks to raise around ₹ 48,000 crore from banks and the financial sector through loans and bonds, having already raised approximately ₹ 43,000 crore for the flagship Delhi-Mumbai Expressway project.

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