NHAI unit to raise around Rs 30 bn via 10-yr bonds soon, say bankers

DME Development, a unit of the National Highways Authority of India (NHAI), is looking to tap the bond market for the first time this financial year, two merchant bankers said on Thursday.
 

The company aims to raise around 30 billion rupees ($360.74 million) through the sale of 10-year bonds and may look to invite bids for the issue later this month, the bankers said.
 

The bonds are rated AAA by Crisil and CARE Ratings.
 

DME is yet to make an official announcement, and NHAI did not immediately respond to a Reuters email seeking comment.
 

DME is a special-purpose vehicle created by the NHAI in August 2020 for the construction of the greenfield Delhi-Mumbai Expressway that passes through the states of Delhi, Rajasthan, Madhya Pradesh, Gujarat and Maharashtra.
 

In March, DME raised 23.55 billion rupees through 10-year bonds at a semi-annual coupon of 7.89%, while in February it raised 36.84 billion rupees through 10-year bonds at a semi-annual coupon of 7.82%.