Delhi - Mumbai Expressway: DMEDL Of NHAI Raises Rs 5,000 Crore Via Bond Offering

by India Infrahub - Mar 17, 2022 12:18 PM +05:30 IST
Delhi - Mumbai Expressway: DMEDL Of NHAI Raises Rs 5,000 Crore Via Bond OfferingDelhi-Mumbai Expressway under construction (@cbdhage/Twitter)

DME Development Limited (DMEDL), a 100 per cent owned entity of the National Highways Authority of India (NHAI), has raised Rs 5,000 crore through maiden 15-year bond offering with variable coupon rates.

“The bond, with a basic size of Rs 1,000 crore plus green shoe of Rs 4,000 crore, was priced at 6.85 per cent. The coupon would be reset each quarter based on the yield on the three-month treasury bill plus fixed spread of 311 basis points,” bond dealers told Business Standard.

DMEDL was incorporated on August 29, 2020, to undertake the Delhi Mumbai Expressway Project development.

The proposed Delhi Mumbai Expressway project is one of the flagship highway projects currently being executed by NHAI. The estimated project cost for Delhi Mumbai Expressway is about Rs 87,453 crore.

DMEDL will raise the finance required for developing the Delhi-Vadodara section under an EPC contract and the upfront commitment needed in the development of the Vadodara-Mumbai section under HAM contract.

While 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 envisaged to be completed by September 2023.

As of January 2021, NHAI has incurred approximately Rs 17,000 crore towards the project. Around Rs 7,300 crore have been spent for civil construction works, while Rs 9,500 crore towards land acquisition and pre-construction activities.

Get Swarajya in your inbox everyday. Subscribe here.

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber
Comments ↓
Get Swarajya in your inbox everyday. Subscribe here.

Latest Articles

    Artboard 4Created with Sketch.