NHAI’s Subsidiary DME Development Limited (DMEDL) Successfully Raises ₹775 Crore through Issue of Green Bonds

In a significant step towards sustainable infrastructure, DME Development Ltd (DMEDL), a subsidiary of the National Highways Authority of India (NHAI), raised ₹775 crore through the issuance of Green Bonds on  December 09, 2024. This marks a milestone for the roads and highways sector, demonstrating the growing alignment between infrastructure growth and environmental sustainability in India.

DMEDL Achieves Green Milestone with ₹775 Crore Bond Issuance

The Green Bonds issued by DMEDL had an initial base size of ₹500 crore, with a green-shoe option for oversubscription of up to ₹275 crore. The bonds were issued at a yield of 7.23% per annum, demonstrating strong investor confidence in the initiative.

The funds will be used to finance a range of eco-friendly projects along highways, including avenue and median plantations, animal underpasses, solar-powered streetlights, rainwater harvesting, waste recycling, and natural stormwater drainage systems. These sustainable measures are part of DMEDL’s strategy to minimise the environmental impact of infrastructure projects.

NHAI Chairman Santosh Kumar Yadav commented on the encouraging response, saying, “This first-of-its-kind initiative for the roads and highways sector will set a benchmark and encourage participation from a diverse set of investors.”

DMEDL’s Role in Infrastructure Growth and Sustainability

DMEDL, established in August 2020 as a Special Purpose Vehicle (SPV), is tasked with financing, constructing, and operating the Delhi-Mumbai Greenfield Expressway. With an AAA credit rating from CRISIL, CARE, and India Ratings, DMEDL has already raised ₹43,000 crore of its ₹48,000 crore funding target for the expressway.

NRVVMK Rajendra Kumar, Member (Finance) at NHAI and Chairman of DMEDL highlighted the successful Green Bond issuance as a reflection of investor confidence in DMEDL’s dual commitment to infrastructure development and environmental sustainability.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.