Cube Highways Trust raises Rs 820 cr via NCDs for debt repayment

Cube Highways Trust has raised Rs 820 crore via non-convertible debentures issued across 3.5-year and 10-year tenors, with proceeds used for repayment of existing debt

Cube Highways Trust, an infrastructure investment trust (InvIT) managed by Cube Highways Fund Advisors, has raised Rs 820 crore through non-convertible debentures (NCDs).

 

The proceeds from the issue will primarily be used to repay existing debt. Following this transaction, fixed-rate borrowings will constitute 33.4 per cent of Cube InvIT’s obligations.

 

Cube InvIT’s board approved the allotment of 82,000 NCDs with a face value of Rs 1 lakh each on a private placement basis on August 20, 2025. The bonds were issued across two tenors — 3.5 years and 10 years — at competitive rates, the InvIT said.

 

The 3.5-year NCDs, maturing on February 20, 2029, were issued at a coupon of 6.93 per cent, while the 10-year NCDs, maturing on August 20, 2035, were issued at a coupon of 7.3 per cent. The debt securities have been rated ‘AAA (Stable)’ by Icra, a credit rating agency.

 

Earlier, in February, Cube InvIT secured an investment of Rs 860 crore from the International Finance Corporation (IFC) by issuing a sustainability-linked bond (SLB).

 

In April, the InvIT raised Rs 1,152 crore through the issuance of AAA-rated NCDs across two tenors — three years and seven years.

 

The three-year series was raised at a coupon of 7.25 per cent with a premium over face value and a subscription of about 2.6 times the offer, for refinancing existing rupee loans. The final participants included five mutual funds and a non-banking financial company (NBFC).

 

Additionally, Cube InvIT is backed by a diversified investor base, including I Squared Capital, a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA); British Columbia Investment Management Corporation; and Abu Dhabi’s sovereign investor Mubadala Investment Company.

 

The InvIT’s portfolio has assets under management of Rs 365.43 billion. Its gross borrowings as of the first quarter of the financial year 2026 (Q1 FY26) also stood at Rs 365.43 billion.