DME Development, a wholly-owned subsidiary of the National Highways Authority of India, plans to raise up to Rs 1,000 crore through issuance of green bonds and is inviting bids for the same next week, two people involved in the development said. He told NDTV Profit.
The basic issue amount is Rs 500 million with a greenshoe option of Rs 500 million and a maturity of 10 years. This is the first green bond to be issued in the road sector.
Bids will be placed on BSE’s electronic platform from 11 am to 12 pm on Monday.
The notes, rated AAA by CARE Ratings, were allocated on December 11 and pay interest semi-annually. AK Capital Services is the sole arranger of this bond offering.
Proceeds from this bond issue will be used for the Delhi-Mumbai expressway and green plantation projects.
DME Development last tapped the debt market in February, when it raised Rs 2,896 crore through a 15-year maturity bond at a semi-annual interest rate of 7.55%.
DME Development is a special purpose vehicle created by NHAI in August 2020 for the construction of the undeveloped Delhi-Mumbai expressway that passes through Delhi and the states of Rajasthan, Madhya Pradesh, Gujarat and Maharashtra .
Of the total expressway length of 1,384km, the company has jurisdiction over a total of 1,277km.
