By Bhakti Tambe
MUMBAI (Reuters) – DME Development, a wholly-owned subsidiary of state-run National Highways Authority of India (NHAI), plans to raise funds through its first-ever green bond issue, and has floated a proposal to appoint advisors and arrangers, three bankers said on Thursday.
The company wants advisors to prepare a green bond framework and to identify NHAI projects for which the proceeds can be used.
It has invited bids from interested parties by Feb. 22.
This will be the first ever green bond issued by NHAI or any of its units.
The size and terms of the issue will be decided in coming months after the arrangers are chosen, the bankers said.
NHAI did not immediately respond to a Reuters email seeking comment.
DME Development is a special-purpose vehicle created by the NHAI in August 2020 for the construction of the greenfield Delhi-Mumbai Expressway that passes through Delhi and the states of Rajasthan, Madhya Pradesh, Gujarat and Maharashtra.
Since its inception, DME Development has raised 140.4 billion rupees ($1.7 billion) through bonds until December.
India companies have issued 17 green bonds aggregating 53.33 billion rupees between 2017 and 2023, according to data available on Securities and Exchange Board of India’s website.
($1 = 82.9707 Indian rupees)
(Reporting by Bhakti Tambe; Editing by Mrigank Dhaniwala)
