November 29, 2023: The Yamuna Expressway Industrial Development Authority (Yeida) is planning to raise Rs 10,000 crore through infrastructure and municipal bonds for its upcoming infrastructure
projects, according to a TOI report. The move will help in funding some ambitious projects, such as the rapid rail corridor.
The media report cited officials stating that the authority will have to assess its creditworthiness before issuing the bonds, a prerequisite for urban local bodies (ULBs) to access capital market borrowings. Two credit rating agencies – CRISIL and CARE, have shown interest in conducting their credit rating, the officials said as per the report. The shortlisted rating agency will identify the authority’s strengths and weaknesses in managing finances. It will also assess the authority’s borrowing capacity for term loans.
As per the report, Yeida CEO Arun Vir Singh has said that some of the important projects include industrial and information technology parks, sports facilities, major roads, bridges, rapid rail corridors and the international airport. He said that the authority will raise funds by issuing infrastructure and municipal bonds to achieve rapid and comprehensive development in the region.
A significant portion of the funds will be directed towards land acquisition and infrastructure development for industrial parks. Yeida has identified meeting the financial requirements for the rapid rail connectivity between Noida International Airport in Jewar and Delhi as a significant challenge.
Infrastructure bonds refer to a type of bond issued by a private corporation or by a state-owned
enterprise to fund infrastructure projects. It is a debt instrument wherein the investor pays a fixed
amount of principal with interest over a period decided by the agency issuing it.
The Yeida has issued a request for a proposal to hire a rating agency with a deadline set for December 5, 2023, for submitting bids. Technical bids will open on December 7, 2023.
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Harini is a content management professional with over 12 years of experience. She has contributed articles for various domains, including real estate, finance, health and travel insurance and e-governance. She has in-depth experience in writing well-researched articles on property trends, infrastructure, taxation, real estate projects and related topics. A Bachelor of Science with Honours in Physics, Harini prefers reading motivational books and keeping abreast of the latest developments in the real estate sector.
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