DME Development Limited (DMEDL), a wholly-owned subsidiary of the National Highways Authority of India (NHAI), obtained Rs 5,000 crore in its first 15-year bond sale with variable interest rates. The bond was priced at 6.85 percent, with a basic size of Rs 1,000 crore and a green shoe of Rs 4,000 crore. Bond traders claimed the coupon would be reset every quarter based on the yield on a three-month Treasury bill plus a fixed margin of 311 basis points. By March 2023, the Delhi-Mumbai section should be completed. The Spur to Jawaharlal Nehru Port Trust (JNPT) section of the highway is expected to be finished by September 2023.
The total estimated project cost is envisaged at about Rs 87,453 crore (including the land acquisition cost proposed to be borne by NHAI). DMEDL will raise the finance required for the development of the Delhi-Vadodara section on EPC basis and upfront commitment required for the development of the Vadodara-Mumbai section on HAM basis.
