NHAI SPV to issue green bonds worth ₹1,000 crore
- DME Development Ltd will issue the bonds to raise funds for the implementation of environment- friendly measures on the Delhi-Mumbai Expressway project.
New Delhi: The National Highways Authority of India’s (NHAI) fully owned special purpose vehicle (SPV) DME Development Ltd (DMEDL) will issue green bonds to raise funds for the implementation of environment-friendly measures on the Delhi-Mumbai Expressway project.
To be held under a closed bidding system, the aggregate total size of the issue will be up to ₹1,000 crore with a base issue size of ₹500 crore. There will be a green-shoe option to retain oversubscription up to ₹500 crore, NHAI said in a statement.
The first-of-its-kind green bond issue in the roads and highways sector is expected to be launched in the second week of December and will be completed with strict compliance to Union government sovereign green bonds framework, international protocols and Securities and Exchange Board of India (Sebi) guidelines, the statement added.
The proceeds from the issue of green bonds will be 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.
NHAI chairman Santosh Kumar Yadav said, “This initiative is a part of our vision to create greener National Highways and reiterates NHAI’s commitment towards environmental sustainability. The green bonds will help to encourage investment in ecofriendly projects, especially in the roads and highways sector, and will facilitate long-term cost savings by reducing energy consumption and lowering the impact of vehicular emissions on the environment.”
The issue will help in enhancing DMEDL’s financial performance in terms of the overall cost of borrowings and will diversify the investor base by attracting environmental, social and governance-focused investors. DMEDL has appointed Care Edge Analytics as the third-party reviewer which has identified and certified the green activities of DMEDL.
Incorporated in August 2020, DMEDL is a wholly owned 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 ₹48,000 crore from banks and financial market through loans and bonds, and has successfully raised around ₹42,000 crore till now for the implementation of the Delhi-Mumbai Expressway project.
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Business NewsEconomyNHAI SPV to issue green bonds worth ₹1,000 crore
First Published:5 Dec 2024, 07:47 PM IST
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