Cube Highways Fund Advisors Private Ltd., the Investment Manager to Cube Highways Trust (CHT), an infrastructure investment trust (InvIT) in India, has announced the listing of its fully subscribed privately placed ordinary units to ₹52,258.27 million (US$ 630 million).
The InvIT has a diversified portfolio of 18 toll and annuity road assets with an aggregate length of 1,423.60 kilometres.
Canadian pension investment manager British Columbia Investment Management Corporation (BCI), Abu Dhabi’s sovereign investor Mubadala Investment Company (Mubadala) and domestic institutional investors have subscribed to the ordinary units, according to officials.
The InvIT will have 17 NHAI toll road assets and one NHAI annuity road asset which are located in 11 states, including Andhra Pradesh, Bihar, Haryana, Jharkhand, Karnataka, Kerala, Rajasthan, Tamil Nadu, Telangana, Uttar Pradesh, and West Bengal.
In addition, as per a right of first offer, CHT will also have an opportunity to access a pipeline of seven highway assets.
U.K. Sinha, independent director, Cube Highways Funds Advisors Private Ltd. said, “This marks a significant milestone in the development of India’s infrastructure sector and InvIT in particular.”
“The trust in Cube by such marquee investors affirms its capability and personnel. The Board and Cube’s team are eager to work with all stakeholders to continue generating value and worth for all. I’m thrilled to participate in Cube’s journey towards a more prosperous and sustainable future.”
The InvIT has also signed a facility agreement with the State Bank of India for ₹100 billion ($1.2 billion) to be used for refinancing of the existing debt within the initial portfolio.
Vinay Sekar, CEO, Cube Highways InvIT, and Pankaj Vasani, Group CFO, are the key executives for Cube Highways.
According to analysts Cube InvIT’s listing is a significant vote of confidence by international investors on the maturity and potential of the Indian infrastructure sector.
As per the National Infrastructure Pipeline (NIP) report of the Task Force, it is envisaged that an investment opportunity of approximately $1.4 trillion will be made during the period FY20 to FY25, which is 2.5 times more than the historical spend on infrastructure.
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