Delhi – In a groundbreaking move toward sustainable infrastructure, the National Highways Authority of India (NHAI) announced its plans to issue ₹1,000 crore worth of green bonds through its Special Purpose Vehicle (SPV), DME Development Limited (DMEDL). The initiative aims to fund environmentally conscious measures for the Delhi-Mumbai Expressway, setting a benchmark for eco-friendly practices in the road and highways sector.
The green bonds, set to launch in mid-December, will be offered through a closed bidding system with a base issue size of ₹500 crore and a green-shoe option allowing oversubscription up to ₹500 crore. This marks the first-ever green bond issuance in India’s road and highway sector, aligning with the Government of India’s sovereign green bond framework and international environmental protocols.
Funding Green Initiatives
The proceeds from the green bonds will be dedicated to eco-friendly measures, including:
- Solar-Powered Streetlights: Transitioning to renewable energy for highway lighting.
- Animal Underpasses: Creating safe crossings for wildlife to mitigate ecological disruption.
- Rainwater Harvesting and Natural Drainage Systems: Ensuring sustainable water management.
- Waste Recycling and Reuse: Promoting a circular economy in infrastructure development.
- Avenue and Median Plantations: Enhancing greenery along the expressway.
NHAI Chairman Santosh Kumar Yadav emphasized the transformative impact of this initiative, stating, “These green bonds represent our commitment to sustainable highway development. By integrating eco-friendly measures, we aim to create greener national highways that reduce energy consumption and vehicular emissions, while encouraging investment in environmentally responsible projects.”
Boosting Financial and Environmental Outcomes
The issuance of green bonds is expected to bolster DMEDL’s financial profile by reducing borrowing costs and diversifying its investor base, attracting stakeholders focused on Environmental, Social, and Governance (ESG) principles. Care Edge Analytics, appointed as the third-party reviewer, has certified the green activities for compliance with global standards.
DMEDL: Leading the Greenfield Infrastructure Revolution
Since its incorporation in August 2020, DMEDL has emerged as a critical player in financing, constructing, and operating the ambitious Delhi-Mumbai Greenfield Expressway. With a stellar AAA credit rating from CRISIL, CARE, and India Ratings, the SPV has already secured ₹42,000 crore of its targeted ₹48,000 crore funding for the expressway’s development.
This initiative positions NHAI and DMEDL as trailblazers in integrating sustainability into infrastructure projects, setting a precedent for green financing in India’s highways sector.
