YEIDA to issue ₹10,000 cr bonds for rail, freight corridors; BBB+ rating draws institutional interest.
In a major infrastructure financing move, the Yamuna Expressway Industrial Development Authority (YEIDA) is set to issue ₹10,000 crore in infrastructure bonds to fund critical multi-modal connectivity projects. The initiative, backed by a BBB+ credit rating, is designed to boost regional integration around the upcoming Jewar International Airport.
YEIDA’s funding will power ambitious projects like a 72-kilometre rapid rail extension from Ghaziabad to Jewar—an offshoot of the Delhi-Meerut RRTS—and a rail link connecting Chola and Rundhi, which ties into India’s Eastern and Western freight corridors. The total cost of these projects is pegged at ₹23,000 crore, with YEIDA covering the remaining ₹13,000 crore internally.
CEO Arun Vir Singh confirmed the BBB+ bond rating, classifying YEIDA within the ‘moderate safety’ zone. “This rating gives us the green light to move forward. The ₹10,000 crore will be raised through a 10-year bond exclusively for airport-linked connectivity projects,” Singh stated.
Infrastructure bonds, typically used by governments and authorities to fund public works, are gaining traction, with similar models adopted by industrial zones in Hyderabad and Pune. YEIDA is engaging 12 government-empanelled transaction advisors to accelerate the plan.
To bolster financial viability, the UP Government has already provided an interest-free ₹3,000 crore loan for land acquisition, alongside separate funding from HUDCO. YEIDA has also created a debt service reserve account (DSRA), maintaining six months of interest payments in advance, and holds over ₹1,000 crore in reserves.
With the international airport poised to transform regional logistics, YEIDA’s bond issuance marks a pivotal step in unlocking seamless rail, metro, and high-speed transport links across NCR and beyond.
Source: Maritime gateway
