The National Highways Authority of India (NHAI) on December 5 said its fully-owned Special Purpose Vehicle DME Development (DMEDL) will issue green bonds worth Rs 1,000 crore through to implement climate-friendly measures on the Delhi-Mumbai Expressway project.
The size of the issue will be up to Rs 1,000 crore, with a base issue size of Rs 500 crore. There will be a green-shoe option up to Rs 500 crore in case of oversubscription, NHAI said.
The first of its kind green bond issue is expected to be launched in the second week of December. Funds raised through this issue will be used for avenue plantation, animal underpasses, stormwater drainage, solar streetlight, waste recycling and rainwater harvesting.
"The green bonds will help to encourage investment in eco-friendly projects especially in Roads & Highways sector and will facilitate long-term cost savings by reducing energy consumption and lowering the impact of vehicular emission on the environment,” Santosh Kumar Yadav, NHAI Chairman said.
"This initiative is a part of our vision to create greener National Highways and reiterates NHAI’s commitment towards environmental sustainability," NHAI Chairman added.
DMEDL has ambitions of raising about Rs 48,000 crore from banks and financial market through loans and bond issue this year, and has already raised around Rs 42,000 crore.
Care Edge Analytics has been appointed as the third-party reviewer to certify the green activities of DMEDL.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
