New Delhi, Dec 5: The National Highways Authority of India (NHAI), through its fully owned Special Purpose Vehicle (SPV) ‘DME Development Limited’ (DMEDL), will issue green bonds to raise funds for implementing eco-friendly measures along the Delhi-Mumbai Expressway project.
The green bond issue, with a total size of up to Rs 1,000 crore, will be conducted through a closed bidding system. The base issue size is Rs 500 crore, with an additional green-shoe option to retain oversubscriptions of up to Rs 500 crore. This is the first-ever green bond issue in the Roads and Highways sector and is expected to launch in the second week of December.
The funds raised will be allocated to activities such as avenue and median plantations, construction of animal underpasses, development of natural stormwater drainage systems, installation of solar-powered streetlights, waste recycling, and rainwater harvesting.
NHAI Chairman, Santosh Kumar Yadav, emphasized that this initiative is part of NHAI’s commitment to promoting environmental sustainability. He added that the green bonds will encourage investment in eco-friendly projects in the roads and highways sector, contributing to long-term cost savings and reducing the environmental impact of vehicular emissions.
The green bond issuance is also expected to improve DMEDL’s financial performance by lowering borrowing costs and attracting environmentally conscious investors. DMEDL has appointed Care Edge Analytics as the Third-Party Reviewer (TPR) to certify the green activities associated with the project.
Incorporated in August 2020, DMEDL is responsible for financing, constructing, and operating the Delhi-Mumbai Greenfield Expressway. It has already raised around Rs 42,000 crore out of its target of Rs 48,000 crore, through loans and bonds for the project.
