NHAI to Secure Rs 1,000 Crore via Green Bonds for Sustainable Development of the Delhi-Mumbai Expressway

The National Highways Authority of India (NHAI) was established by an Act of Parliament in 1988 under the administrative control of the Ministry of Road Transportation and Highways. The NHAI has been established as a Central Authority to develop, maintain, and manage the National Highways entrusted to it by the Government of India.

NHAI to Launch Green Bonds Valued at Rs 1,000 Crore

The National Highways Authority of India (NHAI) is set to issue green bonds amounting to Rs 1,000 crore to secure funding for environmentally friendly initiatives. These initiatives will include solar lighting, rainwater harvesting, and wildlife underpasses for the Delhi-Mumbai Expressway project, as outlined in an official statement released on 5 December 2024.

NHAI’s Special Purpose Vehicle, DME Development Ltd (DMEDL), intends to issue bonds valued at up to ₹1,000 crore through a closed bidding process. This offering comprises an initial size of ₹500 crore, with a green-shoe option allowing for oversubscriptions of an additional ₹500 crore, thereby providing flexibility in fundraising.

India’s First Green Bond

The inaugural green bond issuance in the Roads and Highways sector is anticipated to be introduced in the second week of December 2024. This initiative will adhere closely to the government’s framework for sovereign green bonds, as well as international standards and SEBI guidelines.

Details of the Green Bonds

The National Highways Authority of India (NHAI) plans to issue green bonds to fund environmentally sustainable projects, including plantation drives, animal underpasses, renewable energy streetlights, waste recycling, and rainwater harvesting. 

NHAI Chairman Santosh Kumar Yadav emphasised that the initiative aligns with the goal of greener highways and supports Environmental, Social, and Governance (ESG) priorities. These bonds aim to attract ESG-focused investors, reduce energy consumption, cut vehicular emissions, and improve the financial efficiency of DMEDL.

DMEDL Works 

DME Development Ltd (DMEDL), a Special Purpose Vehicle under NHAI for the Delhi-Mumbai Greenfield Expressway, has been certified for green activities by Care Edge Analytics. Incorporated in August 2020, the AAA-rated company plans to raise ₹48,000 crore through loans and bonds, with ₹42,000 crore already secured for the project.

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