Cube Highways Trust (Cube InvIT) on Thursday said that it has successfully secured ₹1,030 crore through long-term listed non-convertible debentures (NCDs) from the International Finance Corporation (IFC).
The transaction for Cube InvIT, which is managed by Cube Highways Fund Advisors, was finalised on Wednesday (June 28).
The funds raised through this deal will be utilised for a Special Purpose Vehicle (SPV) owned by Cube Highways Trust. The Trust has a diversified portfolio of 18 toll and annuity road assets with an aggregate length of 1,423.60 km.
These road assets are located across 11 states, including Andhra Pradesh, Bihar, Haryana, Jharkhand, Karnataka, Kerala, Rajasthan, Tamil Nadu, Telangana, Uttar Pradesh, and West Bengal.
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Commenting on the transaction, Cube InvIT CEO Vinay Sekar said, “We are grateful for the support and confidence shown by IFC. This collaboration further reinforces Cube’s dedication to upholding exemplary standards of governance and sustainability practices.”
Cube Highways Trust remains committed to operating and maintaining high-quality infrastructure assets and generating long-term value for all the stakeholders, he added.
Wendy Werner, India Country Head at IFC, said, “IFC’s investment in Cube Highways Trust underscores our joint commitment to strengthening the roads sector by demonstrating the crucial role of innovative market financing for sustainable infrastructure development.”
IFC’s support will help catalyse investment from other international and domestic lenders to enhance critical transport infrastructure, connectivity, and logistics, she added.
“Building on a decade-long partnership with Cube Highways as a founding member, we aim to improve the quality of roads for millions across India while contributing to the country’s inclusive economic growth,” Werner said.
Cube InvIT Group CFO Pankaj Vasani said, “With a total tenure of 12 years, and a robust structure, the long-term financing provided by IFC conforms harmoniously to Cube’s overarching strategic objective of fostering a resilient balance sheet, and further bolstering its financial stability and viability in the market.”