The National Highways Authority of India (NHAI) announced on Dec. 5 that its subsidiary, DME Development Ltd. (DMEDL), will issue green bonds worth up to Rs 1,000 crore to fund environmentally sustainable initiatives along the Delhi-Mumbai Expressway, as reported by Money Control.
The bond offering includes a base issue size of Rs 500 crore, with a green-shoe option of an additional Rs 500 crore in case of oversubscription, according to an official statement. The bond issue, the first of its kind by NHAI, is expected to launch in the second week of December.
Proceeds from the green bonds will support eco-friendly measures such as avenue plantation, animal underpasses, stormwater drainage systems, solar-powered streetlights, waste recycling, and rainwater harvesting.
“The green bonds will attract investments in eco-friendly projects, especially in the roads and highways sector, and will enable long-term savings by reducing energy consumption and mitigating vehicular emissions,” said Santosh Kumar Yadav, chairman of NHAI.
“This initiative aligns with our vision of creating greener national highways and underscores NHAI’s commitment to environmental sustainability,” he added.
DMEDL aims to raise approximately Rs 48,000 crore through loans and bond issues this fiscal year, of which Rs 42,000 crore has already been secured.
CareEdge Analytics has been appointed as an independent third-party reviewer to certify the environmental impact of the green projects funded by the bond issue.