DME Development Limited (DMEDL), a wholly owned subsidiary of NHAI, planned to issue green bonds worth up to INR 1,000 crore, with INR 500 crore as the base issuance and the remaining under a greenshoe option. Later in the month, this first-of-its-kind green bond in the roads and highways sector successfully raised INR 775 crore with a yield of 7.23%. The bond was issued as per the sovereign green bond framework.
DMEDL had originally planned to raise INR 48,000 crore from banks and financial markets through loans and bonds for the Delhi–Mumbai expressway project. So far, it has raised INR 43,000 crore. Given the positive response to this green bond, will the company adopt a similar approach to raise the remaining capital? Furthermore, could this success inspire other sectors and projects to explore the green bond market as a viable means of raising funds?