+
 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

Next Story
Real Estate

MoHUA Sanctions 1.47 Lakh Additional Houses Under PMAY-U 2.0

In a major push towards the Government’s Housing for All mission, the Ministry of Housing and Urban Affairs (MoHUA) has approved 1,46,582 additional pucca houses under Pradhan Mantri Awas Yojana – Urban 2.0 (PMAY-U 2.0) for 14 States/UTs, bringing total sanctions under the revamped scheme to 8.56 lakh.The decision came during the fourth meeting of the Central Sanctioning and Monitoring Committee (CSMC), chaired by Srinivas Katikithala, Secretary, MoHUA, at the Ministry’s Kasturba Gandhi Marg office. Senior officials, State Principal Secretaries, and PMAY-U Mission Directors participated ..

Next Story
Real Estate

Piyush Goyal Inaugurates Expanded ISA Building at Intellectual Property Office

Union Minister of Commerce and Industry, Piyush Goyal, today inaugurated the newly expanded International Searching Authority (ISA) building at the Intellectual Property Office (IPO) in Dwarka, New Delhi, marking a major step forward in India’s intellectual property ecosystem.Addressing the gathering, Goyal highlighted that innovation has been central to India’s heritage for centuries, citing the engineering brilliance of the Konark Temple as a historic example. He emphasised that innovation is not just intellectual property but a symbol of sovereignty, and a key driver in India’s journe..

Next Story
Real Estate

SIEGER Boosts Automation in Mumbai Realty

SIEGER, a leading automation solutions provider, is expanding its advanced manufacturing capabilities to meet the surging demand for precision, high-speed automation in Mumbai’s rapidly growing real estate sector.Operating from a 21,000 m² advanced production hub in Coimbatore—part of a 40,000 m² integrated campus—SIEGER offers complete solutions from design and prototyping to manufacturing and deployment. The fully digitalised facility features CNC machining, QR-coded component tracking, conveyorized powder coating, and a Government of India–certified R&D centre, ensuring unmatc..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?