NHAI to Issue Rs. 1,000 Crore Green Bonds for Sustainable Delhi-Mumbai Expressway
In a significant step towards environmental sustainability, the National Highways Authority of India (NHAI) has announced that its fully owned Special Purpose Vehicle (SPV), DME Development Limited (DMEDL), will issue green bonds worth Rs. 1,000 crores. The funds will be used to implement eco-friendly initiatives on the Delhi-Mumbai Expressway, with a focus on projects such as solar lighting, rainwater harvesting, avenue and median plantation, wildlife underpasses, and waste recycling.
The green bond issue, scheduled to be launched in the second week of December 2024, will be conducted under a closed bidding system. The base issue size is Rs. 500 crores, with a green-shoe option to retain oversubscription up to an additional Rs. 500 crores. This marks the first-ever green bond issuance in the roads and highways sector, and it will comply with the Government of India’s sovereign green bond framework, international protocols, and SEBI guidelines.
NHAI Chairman, Santosh Kumar Yadav, highlighted that the green bonds are part of the authority’s ongoing efforts to promote green highways, reduce energy consumption, and mitigate the environmental impact of vehicular emissions. The funds will also enhance DMEDL’s financial performance and attract investors focused on Environmental, Social, and Governance (ESG) criteria.
DME Development Limited, a key entity behind the Delhi-Mumbai Greenfield Expressway project, has already raised around Rs. 42,000 crores and is aiming for a total of Rs. 48,000 crores to complete the ambitious infrastructure project.
