NHAI arm DMEDL raises Rs 775 crore through green bonds for sustainable road development
Summary
DME Development Limited (DMEDL), a subsidiary of the National Highways Authority of India (NHAI), has successfully raised Rs 775 crore through the issuance of green bonds, marking a significant milestone in the roads and highways sector. This first-of-its-kind green bond issuance aims to fund various eco-friendly initiatives including avenue and median plantation, construction of animal underpasses, development of natural stormwater drainage, installation of solar-powered streetlights, waste recycling, and rainwater harvesting.The issuance has garnered significant investor interest, with the base issue size set at Rs 500 crore and an option to retain oversubscription up to Rs 275 crore. The bonds carry an annual yield of 7.23 percent.NHAI Chairman Santosh Kumar Yadav expressed that the successful launch of green bonds in the roads sector would set a new benchmark, encouraging participation from a wide range of investors. N R V V M K Rajendra Kumar, Member (Finance) at NHAI and Chairman of DMEDL, highlighted the strong demand for the green bonds as a testament to investor confidence in DMEDL and NHAIs commitment to balancing infrastructure development with environmental sustainability.Incorporated in August 2020, DMEDL is a Special Purpose Vehicle (SPV) of NHAI, focused on financing, constructing, and operating the Delhi-Mumbai Greenfield Expressway. The company plans to raise Rs 48,000 crore in total through loans and bonds, with Rs 43,000 crore already successfully raised for the flagship expressway project.