NHAI's DMEDL Raises ₹775 Crore via Green Bonds for Highways Projects

10 Dec 2024 , 12:28 PM

DME Development Ltd (DMEDL), a subsidiary company of the National Highways Authority of India (NHAI), successfully raised ₹775 Crore through Green Bonds on December 9, 2024.

The bond issuance was conducted on a closed bidding system; the base size was ₹500 Crore with an additional green shoe of ₹275 Crore. The bonds were issued with an annual yield of 7.23%, which reflects confidence in sustainable infrastructure projects at the investor level.

Proceeds from the Green Bonds would be used for environment-friendly measures along highways such as planting trees, animal underpass, solar-powered streetlights, natural stormwater drainage system, waste recycling, and rainwater harvesting system.

NHAI Chairman Santosh Kumar Yadav thanked investors, considering this a landmark initiative for sustainability in the roads and highways sector.

NRVVMK Rajendra Kumar, Member (Finance) at NHAI and Chairman of DMEDL, said that the successful issuance reflects strong investor trust in DMEDL’s commitment to balancing infrastructure growth with environmental sustainability.

DMEDL was established in August 2020 and is tasked with financing, building, and operating the Delhi-Mumbai Greenfield Expressway, a crucial project for India’s infrastructure.

The ₹43,000 Crore raised already towards its ₹48,000 Crore funding target for the expressway project comes with the AAA credit ratings from CRISIL, CARE, and India Ratings backing DMEDL. The Green Bond issuance represents a pioneering attempt by DMEDL towards funding sustainable infrastructure development.