NHAI subsidiary raises ₹775 crore through landmark green bond issue
DME Development Limited (DMEDL), a wholly-owned subsidiary of the National Highways Authority of India (NHAI), has raised ₹775 crore through the maiden issuance of green bonds in the roads and highways sector. This milestone marks a pioneering step towards integrating sustainable practices with infrastructure development.
The green bond issue, conducted via a close bidding system, had a base size of ₹500 crore with a green-shoe option to retain oversubscription of up to ₹275 crore. The bonds were issued at a yield of 7.23% per annum.
According to NHAI, the proceeds will fund environmentally sustainable activities, including avenue and median plantations, construction of animal underpasses, installation of natural stormwater drainage systems, solar-powered street lighting, rainwater harvesting, and waste recycling and reuse.
NHAI Chairman Santosh Kumar Yadav expressed satisfaction with the response to the initiative. According to him, this first-of-its-kind initiative in the roads and highways sector has set a benchmark and inspires wider participation from the investment community.
NHAI Member (Finance) and DMEDL Chairman, NRVVMK Rajendra Kumar also expressed his views on this green bond issuance. This landmark green bond issue aligns with NHAI’s efforts to promote eco-friendly practices in infrastructure development, creating a precedent for future investments in sustainable projects across the sector.
