National Highways Authority of India (NHAI) has announced that its fully owned Special Purpose Vehicle (SPV) DME Development (DMEDL) will issue green bonds amounting to Rs 1000 crore to fund the implementation of environment friendly measures on Delhi-Mumbai Expressway project.
To be held under closed bidding system, a base issue size will be Rs 500 crore with a green-shoe option to retain oversubscription up to Rs 500 crore totaling to Rs 1000 crore.
The first of its kind green bond issue in Roads and Highways sector is expected to be launched in the second week of December 2024 and will be completed with strict compliance to Government of India’s sovereign green bonds framework, international protocols and SEBI guidelines.
The proceeds from the issue of ‘Green Bonds’ will be used for activities such as expenditure on avenue plantation, median plantation, construction of animal underpasses, natural stormwater drainage, streetlight on renewable energy (solar), waste recycling & reuse and rainwater harvesting.
The issue will help in enhancing DMEDL financial performance in terms of the overall cost of borrowings and will diversify investor base by attracting ‘Environmental, Social, and Governance’ focused investors.
DMEDL has appointed Care Edge analytics as the Third-Party Reviewer (TPR) who have identified and certified the Green Activities of DMEDL.
Incorporated in August 2020, DME Development is a wholly owned Special Purpose Vehicle (SPV) 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 & financial market through loans & bonds and has successfully raised around Rs 42,000 crore till now for the implementation of Delhi – Mumbai Expressway project.