The organisation has begun recruiting advisors and arrangers and has requested proposals for this assignment.
DME Development, a wholly-owned subsidiary of the state-run National Highways Authority of India (NHAI), will issue its first green bonds, according to international news agency Reuters, quoting details provided by three bankers.
The corporation has begun recruiting consultants and arrangers and has issued a request for proposals, with a bid deadline of February 22.
DME Development intends to build a green bond structure with the support of consultants and identify NHAI projects that match sustainability goals for the use of proceeds.
This is the first green bond sale by NHAI or any of its affiliates, and specifics on the size and terms of the offering will be finalised in the coming months following the selection of arrangers. NHAI is yet to reply to this development.
DME Development was established in August 2020 as a special-purpose vehicle committed to the construction of the greenfield Delhi-Mumbai Expressway, which will connect Delhi to the states of Rajasthan, Madhya Pradesh, Gujarat, and Maharashtra.
Since its creation, DME Development has successfully raised 140.4 billion rupees ($1.7 billion) in bonds through December.
Notably, between 2017 and 2023, India had 17 green bond issuances by various corporations, totalling 53.33 billion rupees, according to statistics on the Securities and Exchange Board of India website.
The Delhi-Mumbai Expressway will be India’s longest motorway, covering 1,386 kilometres.
It will cut the travel distance between Delhi and Mumbai by 12%, from 1,424 km to 1,242 km, which is more efficient. It will cut the travel duration from a whole day to 12 hours.
This vast motorway connects six states: Delhi, Haryana, Rajasthan, Madhya Pradesh, Gujarat, and Maharashtra. It will ensure seamless travel through key cities such as Kota, Indore, Jaipur, Bhopal, Vadodara, and Surat.
It is anticipated to benefit 93 PM Gati Shakti economic hubs, 13 ports, 8 major airports, and 8 multimodal logistics parks.
It will also provide convenient access to prospective greenfield airports such as Jewar Airport (UP), Navi Mumbai Airport and the JNPT port (Maharashtra).
The Expressway is projected to be completely operational by the end of the year.