Cube Highways Trust Raises Rs. 1,150 Crore via AAA-Rated NCDs

Cube Highways Trust, a prominent infrastructure investment trust listed on NSE and BSE under the ticker CUBEINVIT, has successfully raised Rs. 1,150 crore through the issuance of senior secured non-convertible debentures (NCDs). These financial instruments carry a competitive coupon rate of 7.50% per annum, with interest payments scheduled quarterly over a five-year period.

The issuance was managed by Cube Highways Fund Advisors Pvt. Ltd., the trust’s official investment manager. The NCDs, each with a face value of Rs. 1 lakh, were issued via the NSE Electronic Bidding Platform, concluding on September 28, 2026. This tranche of debt is part of a broader funding strategy aiming to mobilize up to Rs. 4,500 crore, spread over multiple tranches and possibly involving other debt instruments such as commercial papers and rupee-denominated facilities.

Institutional participation was robust, with two major banks playing pivotal roles. Axis Bank Limited subscribed to Rs. 550 crore of the NCDs, split between Rs. 165 crore as an anchor investor and Rs. 385 crore as a non-anchor investor. Similarly, ICICI Bank Limited acquired Rs. 600 crore, with Rs. 180 crore allocated as an anchor allocation and Rs. 420 crore as a non-anchor. These investments underline the strong institutional confidence in Cube Highways Trust’s financial health and growth prospects.

The funds raised are earmarked primarily for refinancing existing senior debt and commercial paper obligations. Additionally, proceeds will support capital expenditure and maintenance activities across Cube Highways Trust’s portfolio of project special purpose vehicles (SPVs). This strategic refinancing effort is designed to optimize the trust’s capital structure and enhance liquidity to fund ongoing and future infrastructure projects.

Cube Highways Trust operates under the Indian Trusts Act, 1882, and is registered with the Securities and Exchange Board of India (SEBI) as an Infrastructure Investment Trust (SEBI Registration No: IN/InvIT/22-23/0022). The entity transitioned from a private listed InvIT to a publicly listed InvIT effective July 31, 2026, marking a significant milestone in its corporate journey.

The trust’s sponsor is part of the Cube Group, an institutionally owned road infrastructure platform with diversified backing. Its investors include global infrastructure fund I Squared Capital, Platinum Rock (a subsidiary of the Abu Dhabi Investment Authority), BCI through Varese IRR LP, and Mubadala Investment Company PJSC via Seventy Second Investment Company LLC. This strong investor base reflects the trust’s credibility and long-term investment appeal within the infrastructure sector.

It is worth highlighting that Axis Bank Limited is a related party to Cube Highways Trust due to its promoter role in Axis Trustee Services Limited, which acts as the trustee for the trust. All related party transactions involved in this NCD issuance received the necessary approvals from the Audit Committee and Board in compliance with regulatory requirements.

This recent capital raise aligns with the growing trend of infrastructure investment trusts seeking diversified funding sources to support India’s expanding infrastructure needs. With a targeted Rs. 4,500 crore financing program, Cube Highways Trust is positioning itself to maintain steady growth while managing its debt profile prudently.

In summary, the successful raising of Rs. 1,150 crore through AAA-rated NCDs backed by prominent financial institutions represents a significant development for Cube Highways Trust. It underlines investor confidence and provides the trust with resources to strengthen its financial position and continue its infrastructure development projects.