₹10,000 Crore Bond Issuance by YEIDA for Noida Airport, Rail Links.

The Yamuna Expressway Industrial Development Authority (YEIDA) is set to undertake the significant task of building comprehensive connectivity for the upcoming Noida International Airport, announcing plans to raise ₹10,000 crore through infrastructure bonds to finance crucial projects.

These funds will be directed towards a 72km rapid rail line connecting Ghaziabad to Jewar, serving as an offshoot of the Delhi-Meerut RRTS corridor. Additionally, the financing will support a rail link between Chola and Rundhi, designed to connect the eastern and western freight corridors, along with other multi-modal connectivity projects. These initiatives are aimed at seamlessly integrating the region with Delhi, Gurgaon, and surrounding areas.

The total estimated cost for these ambitious projects stands at ₹23,000 crore, with YEIDA planning to self-finance the remaining ₹13,000 crore.

"We received a BBB+ rating for our infra bonds," stated Arun Vir Singh, CEO of YEIDA. "This gives us the green light to go ahead with our fundraising efforts. The aim is to raise ₹10,000 crore with a 10-year bond. The entire amount will be used for connectivity projects linked to the airport." A BBB+ rating, positioned in the 'moderate safety' zone on the credit rating scale (from 'AAA' to 'D'), is expected to instill confidence among institutional investors, potentially leading to lower interest rates on the bonds.

Infrastructure bonds are recognized debt instruments utilized by governments and agencies to raise capital specifically for public infrastructure projects, a model already successfully employed by industrial authorities in Hyderabad and Pune.

To progress with the plan, YEIDA has engaged with 12 government-empanelled transaction advisors. "We have written to all eligible transaction advisors. Interested firms will present their proposals by the end of this month, and we will select one to guide us through the bond issuance process," Singh added.

YEIDA's push for infrastructure funding is bolstered by prior financial commitments, including an interest-free loan of ₹3,000 crore from the Uttar Pradesh government for land acquisition, and a separate funding arrangement signed with HUDCO. However, officials emphasize that substantial additional capital is required, particularly with the international airport driving a surge in multi-modal transport demands. These demands encompass new routes to link the area with major national railway lines, high-speed rail, metro networks, and personal rapid transit systems.

To ensure financial stability, YEIDA currently holds over ₹1,000 crore in reserve and has established a dedicated debt service reserve account (DSRA), where six months' worth of interest payments are maintained in advance to guarantee timely debt servicing.