YEIDA Plans to Raise Rs. 10,000 Crore through Infrastructure Bonds for Rapid Rail Link and Vital Projects

The Yamuna Expressway Industrial Development Authority (YEIDA) has embarked on a strategic move to raise Rs. 10,000 crore through infrastructure and municipal bonds, signaling a pivotal step for financing significant projects, including a rapid rail corridor.

Officials revealed that before issuing the bonds, the Authority must undergo a credit assessment to determine its creditworthiness-a prerequisite for urban local bodies (ULBs) seeking capital market borrowings. In a meeting held on Tuesday, two prominent companies, CRISIL and CARE, expressed their interest in conducting the credit rating for the Authority.

The selected rating agency will scrutinize the Authority's financial management strengths and weaknesses, evaluating its borrowing capacity for term loans. Notably, this initiative aligns with YEIDA's overarching objective of funding vital projects that contribute to rapid and comprehensive regional development.

YEIDA CEO Arun Vir Singh highlighted the diverse range of projects that would benefit from the raised funds, including industrial and information technology parks, sports facilities, major roads, bridges, rapid rail corridors, and the international airport. Singh emphasized the issuance of infrastructure and municipal bonds as a strategic means to achieve financial goals.

A substantial portion of the funds is earmarked for land acquisition and infrastructure development for industrial parks, with a special focus on meeting the financial demands for the rapid rail connectivity between Noida International Airport in Jewar and Delhi.

Infrastructure bonds, as debt instruments, provide fixed principal repayment with interest over a predetermined period, serving as a crucial source for funding city development and maintenance projects. YEIDA's recent A+ rating from SBI, along with its receipt of an interest-free loan of Rs. 1,779 crore from the state government and profits exceeding Rs. 400 crore in the previous financial year, positions the Authority for an improved credit rating.

YEIDA has issued a request for proposal to engage a rating agency, setting December 5 as the deadline for bids. The credit rating process will unfold in three stages, involving data gathering, presentation of a comprehensive work schedule plan, and the submission of the final credit rating report. The entire process may extend beyond seven months.

ET