NHAI Plans to Launch Green Bonds Valued at ₹1,000 Crore
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New Delhi, Dec 5 (NationPress) The National Highways Authority of India (NHAI) is preparing to issue green bonds amounting to ₹1,000 crore aimed at generating funds for the execution of environmentally friendly initiatives such as solar lighting, rainwater harvesting, and wildlife underpasses as part of the Delhi-Mumbai Expressway project, according to an official announcement released on Thursday.
The bonds are set to be issued by NHAI's wholly owned Special Purpose Vehicle (SPV) 'DME Development Ltd' (DMEDL) through a closed bidding system. The total size of the issue will reach up to ₹1,000 crore with a base issue size of ₹500 crore. Additionally, there will be a green-shoe option to accommodate oversubscription of up to ₹500 crore, as indicated in the statement.
This pioneering green bond issuance in the Roads and Highways sector is anticipated to commence in the second week of December 2024, adhering strictly to the government's sovereign green bonds framework, international standards, and SEBI guidelines.
Funds from the issuance of these Green Bonds will be allocated towards activities such as costs related to avenue plantation, median plantation, constructing animal underpasses, natural stormwater drainage, solar-powered streetlights, waste recycling and reuse, and rainwater harvesting.
NHAI Chairman Santosh Kumar Yadav expressed, "This initiative aligns with our vision to establish greener National Highways and underscores NHAI's dedication to environmental sustainability. The green bonds will facilitate investment in eco-friendly projects, particularly in the Roads & Highways sector, and will enable long-term savings by minimizing energy consumption and reducing the environmental impact of vehicular emissions."
This bond issue will enhance DMEDL's financial standing concerning overall borrowing costs and will broaden the investor base by appealing to Environmental, Social, and Governance focused investors. DMEDL has appointed Care Edge Analytics as the Third-Party Reviewer (TPR) to evaluate and certify the green initiatives of DMEDL.
Founded in August 2020, DME Development Ltd is a fully owned SPV of NHAI dedicated to financing, constructing, and managing the Delhi-Mumbai Greenfield Expressway. It has received a AAA rating from CRISIL, CARE, and India Rating. DMEDL aims to secure approximately ₹48,000 crore from banks and financial markets through loans and bonds and has successfully raised around ₹42,000 crore to date for the Delhi-Mumbai Expressway project.
