Delhi-Mumbai Expressway raises Rs 5k cr through maiden bond offering
ROADS & HIGHWAYS

Delhi-Mumbai Expressway raises Rs 5k cr through maiden bond offering

Delhi-Mumbai Expressway Development Limited (DMEDL), a wholly-owned entity of the National Highways Authority of India (NHAI), has raised Rs 5,000 crore via a maiden 15-year bond offering with variable coupon rates.

The bond, with a basic size of Rs 1,000 crore plus greenshoe of Rs 4,000 crore, was priced at 6.85%. The coupon would be reset each quarter based on the yield on the three-month treasury bill plus a fixed spread of 311 basis points, as per the bond dealers.

In February this year, the rating agency CARE reaffirmed “AAA” with a stable outlook. The Delhi-Mumbai stretch is aimed to be achieved by March next year. The last section of the highway, i.e., spur to Jawaharlal Nehru Port Trust (JNPT), is envisaged to be achieved by September 2023.

The total estimated project cost is envisaged at around Rs 87,453 crore (comprising the land purchase cost offered to be borne by NHAI).

DMEDL will raise the finance needed for the growth of the Delhi-Vadodara section on an EPC basis and the upfront commitment needed for the development of the Vadodara-Mumbai section on a Hybrid annuity model (HAM) basis.

The rating is backed by the Letter of Comfort (LoC) from NHAI in favour of the lenders funding the project.

NHAI will retain at least a 51% stake in the firm and invest additional equity or arrange for term facilities in case of any shortfall in the funding plan.

Image Source

Also read: Delhi-Mumbai Expressway raises Rs 18,456 cr from bonds and loans

Delhi-Mumbai Expressway Development Limited (DMEDL), a wholly-owned entity of the National Highways Authority of India (NHAI), has raised Rs 5,000 crore via a maiden 15-year bond offering with variable coupon rates. The bond, with a basic size of Rs 1,000 crore plus greenshoe of Rs 4,000 crore, was priced at 6.85%. The coupon would be reset each quarter based on the yield on the three-month treasury bill plus a fixed spread of 311 basis points, as per the bond dealers. In February this year, the rating agency CARE reaffirmed “AAA” with a stable outlook. The Delhi-Mumbai stretch is aimed to be achieved by March next year. The last section of the highway, i.e., spur to Jawaharlal Nehru Port Trust (JNPT), is envisaged to be achieved by September 2023. The total estimated project cost is envisaged at around Rs 87,453 crore (comprising the land purchase cost offered to be borne by NHAI). DMEDL will raise the finance needed for the growth of the Delhi-Vadodara section on an EPC basis and the upfront commitment needed for the development of the Vadodara-Mumbai section on a Hybrid annuity model (HAM) basis. The rating is backed by the Letter of Comfort (LoC) from NHAI in favour of the lenders funding the project. NHAI will retain at least a 51% stake in the firm and invest additional equity or arrange for term facilities in case of any shortfall in the funding plan. Image Source Also read: Delhi-Mumbai Expressway raises Rs 18,456 cr from bonds and loans

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code