Informist, Friday, Feb 2, 2024

By Subhana Shaikh and Asmita Patil

NEW DELHI – DME Development, a wholly-owned subsidiary of the National Highways Authority of India, has invited proposals to appoint an advisor, a project consultant, and an arranger for its maiden green bond issuance, according to a request for proposal document accessed by Informist.

The company intends to appoint an entity for preparation of the green bond framework, identification of projects for which the bond will be issued, and assist in other related formalities. The bids have to be submitted by Feb 22. 

Among other criteria for eligibility, the bidder should be among the top 10 arrangers for domestic bond issuance in any of the last five years, should have experience of minimum 10 years, and experience of working on at least one assignment involving debt fundraising through green bonds. 

DME Development was incorporated to raise finance for the Delhi–Mumbai Expressway project, being executed by NHAI. DME Development has a total of 1,277 km of the expressway under its purview out of 1,384 km of total expressway length, according to the document. The estimated cost of the project is 874.53 bln rupees and the funding required is 538.49 bln rupees, according to the document. Of the total funds required, NHAI intends to raise 484.64 ln rupees through debt.

Since its inception, DME Development has raised 140.39 bln rupees through bonds and 224.81 bln rupees through term loan till December, according to the document. The company tapped the bond market in December, and raised 30 bln rupees through bonds maturing in 15 years at a coupon of 7.74%, payable semi-annually.

The company has received 45.34-bln-rupee worth of equity from its parent till December, and it will maintain an equity capital of 53.85 bln rupees, according to the document.  End

Edited by Tanima Banerjee

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