In a landmark achievement for sustainable infrastructure development, DME Development Limited (DMEDL), a subsidiary of the National Highways Authority of India (NHAI), has raised ₹775 crore through the issuance of green bonds — the first of its kind in the Indian roads and highways sector.
In a statement, NHAI Chairman Santosh Kumar Yadav, IAS, called the initiative a trailblazer. “This successful green bond issuance is a benchmark for the sector. I am grateful for the investors’ support, which highlights their confidence in our commitment to sustainable development,” he remarked.
NRVVMK Rajendra Kumar, Member (Finance), NHAI and Chairman of DMEDL, underscored the significance of the investor response. “The robust demand for green bonds underscores the trust in NHAI and DMEDL’s vision. It reinforces our dedication to balancing infrastructure growth with environmental sustainability,” he stated.
Key Highlights of the Bond Issue:
- Issue Size: ₹775 crore, with a base size of ₹500 crore and a green-shoe option for oversubscription of up to ₹275 crore.
- Yield: Offered at 7.23% per annum.
- Purpose: The proceeds are allocated to eco-friendly initiatives, including avenue and median plantation, animal underpasses, natural stormwater drainage systems, solar-powered streetlights, waste recycling, and rainwater harvesting.
Driving Sustainable Infrastructure
DMEDL was incorporated in August 2020 as a wholly-owned Special Purpose Vehicle (SPV) of NHAI to finance, construct, and operate the ambitious Delhi-Mumbai Greenfield Expressway. The company’s stellar financial credentials, including a AAA rating from CRISIL, CARE, and India Ratings, have bolstered investor confidence. To date, DMEDL has raised ₹43,000 crore of its ₹48,000 crore funding goal for the project.
This successful bond issue not only reflects the increasing investor appetite for green financing but also sets the stage for similar sustainable funding initiatives in the infrastructure sector. By focusing on environmentally-conscious projects, DMEDL aims to lead the way in achieving a balance between economic growth and ecological preservation.
As the Delhi-Mumbai Expressway project progresses, this landmark financing initiative is expected to catalyze further investments in sustainable infrastructure, driving India closer to its goals of green development.
