Cube Highways Trust secures Rs 1,030 cr funding from IFC via long-term NCDs

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Cube Highways Trust (Cube InvIT), managed by Cube Highways Fund Advisors Pvt. Ltd, on Thursday successfully secured Rs 1,030 crore through long-term listed non-convertible debentures (NCDs) from the International Finance Corporation (IFC).

The transaction was finalised on June 28, 2023.

The funds raised through this deal will be utilised for a special purpose vehicle (SPV) owned by Cube Highways Trust, the company said in a statement.  

Cube Highways Trust has a diversified portfolio of 18 toll and annuity road assets with an aggregate length of 1,423.60 kilometres. 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.  

"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”, said Vinay Sekar, CEO of Cube InvIT.

“Cube Highways Trust remains committed to operating and maintaining high-quality infrastructure assets and generating long-term value for all our stakeholders," he added.

Pankaj Vasani, Group CFO of Cube InvIT, 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.”

"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. Our support will help catalyse investment from other international and domestic lenders to enhance critical transport infrastructure, connectivity, and logistics,” said Wendy Werner, India Country Head at IFC.

“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,” she added.