New Delhi: NHAI on Thursday said its special purpose vehicle DME Development Ltd (DMEDL) will raise Rs 1,000 crore through green bonds to implement climate-friendly measures on the Delhi-Mumbai Expressway project. The aggregate size of the issue will be up to Rs 1,000 crore, with a base issue size of Rs 500 crore. Also, there will be a green-shoe option to retain oversubscription up to Rs 500 crore, NHAI (National Highways Authority of India) said in a statement.
The issue is expected to be launched in the second week of December 2024, it said, adding, the proceeds will be used for 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 the green bonds will help “encourage investment in eco-friendly projects especially in roads and highways sector and will facilitate long-term cost savings by reducing energy consumption and lowering the impact of vehicular emission on the environment”.
The issue will help enhance DMEDL’s financial performance in terms of the overall cost of borrowings and diversify investor base by attracting environmental, social, and governance (ESG) focused investors, NHAI said.
DMEDL has appointed Care Edge Analytics as the third-party reviewer who have identified and certified the green activities of DMEDL.
Incorporated in August 2020, DMEDL is a wholly-owned special purpose vehicle 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 Rs 48,000 crore from banks as well as financial market through loans and bonds and has raised around Rs 42,000 crore.
