NHAI had also stated that its special purpose vehicle, DME Development Ltd. (DMEDL), would issue ₹1,000 crores of green bonds for its eco-friendly initiatives along the Delhi-Mumbai Expressway, wherein the authorities would work to enhance the environmental aspects through measures like plantation, animal underpasses, renewable energy, and rainwater harvesting, among other initiatives.
The total issue size for green bonds will be up to ₹1,000 crores, comprising a base size of ₹500 crores with an additional green-shoe option to accommodate oversubscriptions up to ₹500 crores. NHAI said the issue is scheduled to launch in the second week of December 2024 and is targeting investments from environmentally and socially conscious investors.
The proceeds from the issuance of the bonds will be used on different green activities, such as avenue and median plantations, natural stormwater drainage, construction of animal underpasses, installation of streetlights fueled by solar energy, waste recycling and reuse, and rainwater harvesting systems.
DMEDL, a wholly owned special purpose vehicle of NHAI, established in August 2020, has played a vital role in the financing, construction, and operation of the Delhi-Mumbai greenfield expressway. The company enjoys a AAA credit rating from CRISIL, CARE, and India Rating, which signifies the financial solidity of the company.
So far, DMEDL has mobilized ₹42,000 crore from banks and the financial market and hopes to reach a total of ₹48,000 crore with loans and bonds. The green bond initiative is a step in its direction to diversify the investor base by reaching out to environmental, social, and governance (ESG)-focused investors, increasing the efficiency of borrowing, and providing support to climate-friendly infrastructure projects.
To ensure credibility, Care Edge Analytics has been appointed as the third-party reviewer, responsible for identifying and certifying the green activities financed by the bonds.
Conclusion
With the issue of green bonds, NHAI is aligning the Delhi-Mumbai Expressway project with sustainable development goals that ensure minimal environmental impact and climate-resilient infrastructure. With green initiatives, DMEDL is supporting ecological preservation enhancing financial performance, and broadening its investor base.
Source: PTI