IFC invests Rs 860 crore in Cube InvIT's sustainability-linked bond

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The International Finance Corporation (IFC) has invested Rs 860 crore (approximately $98.35 million) in a sustainability-linked bond (SLB) issued by the Cube Highways Trust (Cube InvIT—Infrastructure Investment Trust).

 

The InvIT aims to fund the acquisition of NAM Expressway Limited (NAM), a highway connecting Chennai and Hyderabad, and support the InvIT’s “long-term corporate objectives, including sustainability and inclusion initiatives.”

 

Earlier, the InvIT completed the acquisition of 100 per cent equity shareholding of NAM Expressway at a consideration of Rs 717.60 crore on February 12, 2025, in accordance with the share purchase agreement (SPA) executed between the parties in June 2024.

 

The InvIT further stated that the bond is India’s first SLB in the roads sector and also the first by a road InvIT in India. “As the anchor investor, IFC’s investment is set to mobilise additional capital, helping drive advancements in India’s road infrastructure while upholding global Environmental, Social, and Governance (ESG) standards,” it added.

 

Vinay Sekar, chief executive officer (CEO) of Cube InvIT, said, “This transaction demonstrates Cube InvIT’s ability to execute upon its strategy of deploying its debt capacity on accretive acquisitions; NAM is characterised by strong traffic fundamentals and positioned strategically as the shortest route between Chennai and Hyderabad.”

 

Previously, the InvIT signed SPAs with the National Investment and Infrastructure Fund Limited (NIIF) to acquire two road assets at an enterprise value of Rs 4,184 crore a few days ago.

 

“This collaboration highlights the critical role of InvITs in expanding and diversifying sources of investment within the road sector,” said Imad N. Fakhoury, regional director for South Asia, IFC.