Cube Highways Trust Raises Rs 1,150 Crore via AAA-Rated NCDs
Cube Highways Trust has successfully raised Rs 1,150 crore through AAA-rated NCDs to fund refinancing and capital expenditure.
In a significant move for the infrastructure sector, Cube Highways Trust (Cube InvIT) has successfully raised Rs 1,150 crore through the issuance of senior, secured, listed, and rated non-convertible debentures (NCDs). The issuance, which carries a high-quality AAA rating, marks a major milestone in the trust's ongoing financing strategy.
Key Details of the NCD Issuance
The NCDs were issued with a face value of Rs 1 lakh each, offering a coupon rate of 7.50% per annum. Investors can expect quarterly interest payments over a five-year tenor. The bidding process for these instruments was conducted via the NSE Electronic Bidding Platform and concluded on September 28, 2026.
The capital raised is earmarked for several critical financial objectives, including:
- Refinancing existing senior debt facilities.
- Settling outstanding commercial papers.
- Funding capital expenditure (Capex) requirements.
- Meeting maintenance expenses for Project Special Purpose Vehicles (SPVs).
Institutional Heavyweights Lead the Subscription
The issuance saw strong participation from major institutional players, with two banking giants leading the charge. The allocation of funds was distributed as follows:
- ICICI Bank Limited: Subscribed to a total of Rs 600 crore, consisting of Rs 180 crore as an Anchor Investor and Rs 420 crore as a Non-Anchor Investor.
- Axis Bank Limited: Subscribed to a total of Rs 550 crore, comprising Rs 165 crore as an Anchor Investor and Rs 385 crore as a Non-Anchor Investor.
Note: Axis Bank Limited is considered a related party to Cube Highways Trust, as it serves as the promoter of Axis Trustee Services Limited, the Trustee for the Trust. All necessary regulatory approvals from the Board and Audit Committee have been secured.
A Part of a Larger Financing Roadmap
This successful NCD issuance is not an isolated event but part of a much larger financial blueprint. Cube InvIT has an approved financing programme aimed at raising up to Rs 4,500 crore. This massive fundraise will be executed through multiple tranches using a mix of NCDs, commercial papers, and rupee-denominated facilities.
About Cube Highways Trust
Cube Highways Trust is an irrevocable Trust established under the Indian Trusts Act, 1882, and is registered with SEBI as an Infrastructure Investment Trust. The platform is backed by a diverse group of global institutional investors, including I Squared Capital, Mubadala Investment Company, Abu Dhabi Investment Authority (via Platinum Rock), and BCI.