Debt

Debt financing

Delhi-Mumbai Expressway raises Rs.5,000-Cr via bond offering

Business Standard  

DME Development Limited (DMEDL), a wholly-owned entity of the National Highways Authority of India (NHAI), has raised INR 5,000 crore through maiden 15-year bond offering with variable coupon rates. The bond, with a basic size of INR 1,000 crore plus green shoe of INR 4,000 crore, was priced at 6.85 %. The coupon would be reset each quarter. The Delhi-Mumbai stretch is targeted to be completed by March 2023. The last section of the highway, i.e., Spur to Jawaharlal Nehru Port Trust (JNPT), is expected to be completed by September 2023. The total estimated project cost of about INR 87,453 crore, including the land acquisition cost, is proposed to be borne by NHAI. DMEDL will raise the finance required for the development of the Delhi-Vadodara section on EPC (engineering, procurement and construction) basis and upfront commitment required for the development of the Vadodara-Mumbai section on HAM (hybrid annuity model) basis.