NHAI subsidiary DMEDL likely to buy back ₹5,975 crore bonds this week

DME Development Ltd, the NHAI-owned SPV for the Delhi-Mumbai Expressway, is preparing a ₹5,975 crore bond buyback after earlier repurchasing ₹9,924 crore

DME Development Limited (DMEDL), a fully owned subsidiary of the National Highways Authority of India (NHAI), is planning to buy back ₹5,975 crore worth of its listed non-convertible debentures out of the ₹15,899 crore outstanding, sources said. The buyback is expected to be executed in the coming week.

 

The company has already repurchased ₹9,924 crore of bonds earlier. SBI Capital Markets is arranging the current buyback.

 

What is DMEDL’s role within the NHAI structure? 

Incorporated in August 2020, DMEDL is a Special Purpose Vehicle (SPV) for financing, constructing and operating the Delhi–Mumbai Greenfield Expressway. It has received AAA ratings from CRISIL, CARE and India Ratings.

 

The entity was structured so that it undertakes fund-raising and financing, while NHAI retains responsibility for construction, operations and tolling under concession and implementation agreements.

 

Why has the company opted for a buyback? 

Sources said DMEDL is opting for the buyback due to comfortable surplus cash on its books.

 

In December 2024, the company issued 10-year green bonds totalling ₹775 crore, with a ₹500-crore base size and a ₹275-crore green-shoe option.

 

How is the broader bond market positioned? 

The buyback comes at a time when the corporate bond market is showing signs of revival after muted issuance during Q2 and much of the current quarter.

 

Ahead of the Reserve Bank of India’s monetary policy review in early December, major financial institutions — including Nabard, Sidbi, PFC and IRFC — plan to raise up to ₹24,000 crore through bond issuances next week, with ₹19,000 crore scheduled for Tuesday alone.

 

Market participants said yields may have bottomed out and could harden if the Monetary Policy Committee maintains the policy repo rate.

 

What other major issuances are expected next week?

 

• Nabard plans to raise up to ₹7,000 crore via bonds maturing on February 23, 2029.
• Sidbi aims to raise up to ₹6,000 crore through bonds maturing on January 10, 2029.
• PFC will raise up to ₹3,000 crore each through a 3-year 4-month bond maturing April 13, 2029, and a 10-year bond maturing November 27, 2035.
• IRFC plans a 10-year zero-coupon bond issue of ₹1,000 crore, with a ₹4,000-crore green-shoe option, maturing December 1, 2035.