NHAI Arm Lines Up First Green Bond Issue Worth Rs 1,000 Crore Next Week

DME Development, a wholly owned subsidiary of National Highways Authority of India, plans to raise up to Rs 1,000 crore through the issue of green bonds and has invited bids for the same next week, two people aware of the development told NDTV Profit.

The issue, which has a base size of Rs 500 crore and a greenshoe option of Rs 500 crore, will have a maturity of 10 years. This will be the first green bond issuance in the road sector.

Bidding will take place on the BSE's electronic platform on Monday from 11:00 a.m. to 12:00 p.m.

The bonds, rated AAA by CARE Ratings, which will be allotted on Dec. 11 have an interest frequency payment on a semi-annual basis. AK Capital Services is the sole arranger for this bond issue.

Proceeds of this bond issue will be used for the Delhi-Mumbai Expressway and green plantation projects.

The last time DME Development had tapped the bond market was in February, when it raised Rs 2,896 crore through bonds maturing in 15 years at a semi-annual coupon of 7.55%.

DME Development is a special-purpose vehicle created by the NHAI in August 2020 for the construction of the greenfield Delhi-Mumbai Expressway that passes through Delhi and the states of Rajasthan, Madhya Pradesh, Gujarat and Maharashtra.

The company has a total of 1,277 km of the expressway under its purview out of 1,384 km of total expressway length.