State-run National Highway Authority of India (NHAI) said on Monday that its subsidiary, DME Development (DMEDL), successfully raised ₹775 crore from the first of its kind issue of green bonds in roads and highways sector.

Speaking on the issue, NHAI Chairman Santosh Kumar Yadav said, “I am very pleased with the encouraging response and would like to thank the investors who have supported such a unique offering. This first-of-its-kind initiative for the roads and highway sector will set a benchmark and encourage participation from a diverse set of investors”.

Held under a close bidding system, the aggregate total size of the issue was ₹775 crore with a base issue size of ₹500 crore and a green-shoe option to retain over-subscription up to ₹275 crore, with a yield of 7.23 per cent per annum, NHAI said.

NHAI’s Member (Finance) and Chairman DMEDL NRVVMK Rajendra Kumar said: “The robust demand for green bonds and successful issuance demonstrate the confidence of investors in DMEDL and NHAI and encouragement of our commitment to balance infrastructure growth and environment sustainability for a holistic development.”

The proceeds from the issue of green bonds have been used for activities such as expenditure on avenue plantation, median plantation, construction of animal underpasses, natural storm water drainage, street light on renewable energy (solar), waste recycling & reuse and rainwater harvesting.

Incorporated in August 2020, DME Development is a wholly owned Special Purpose Vehicle (SPV) of NHAI for financing, construction, and operation of the Delhi-Mumbai Greenfield Expressway and has received AAA rating from CRISIL, CARE and India Rating.

DMEDL aims to raise about ₹48,000 crore from banks and financial markets through loans and bonds. It has successfully raised around ₹43,000 crore for implementation of the flagship Delhi–Mumbai Expressway project.