Proceeds for investment in eco-friendly projects
Reiterating its commitment to promote environment sustainability and development of green highways, National Highways Authority of India’s fully owned Special Purpose Vehicle (SPV) ‘DME Development Limited’ (DMEDL) will issue green bonds of Rs.1,000 crore to raise funds for the implementation of environment friendly measures on Delhi-Mumbai Expressway project https://morth.nic.in/.
To be held under closed bidding system, the aggregate total size of the issue will be up to Rs.1,000 crores with a base issue size of Rs.500 crores. There will be a green-shoe option to retain oversubscription up to Rs.500 crores https://www.globaltenders.com/.
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’s sovereign green bonds framework, international protocols and SEBI guidelines, Ministry of Road Transport and Highways said on 5 Dec https://ted.europa.eu/en/.
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 https://www.bseindia.com/.
Commenting on this initiative NHAI Chairman Santosh Kumar Yadav said, “This initiative is a part of our vision to create greener National Highways and reiterates NHAI’s commitment towards environmental sustainability https://www.nseindia.com/.
“The green bonds will help to encourage investment in eco-friendly projects especially in Roads & Highways sector and will facilitate long-term cost savings by reducing energy consumption and lowering the impact of vehicular emission on the environment https://sbi.com.in/.”
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 https://www.conexpoconagg.com/.
Incorporated in August 2020, ‘DME Development Ltd.’ 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. Fiinews.com
