Cube Highways Trust Successfully Raises Rs 600 Crore Through Bond Issue
Cube Highways Trust has successfully completed a significant bond issuance of Rs 600 crore, arranged by Axis Bank Ltd. The offering attracted diverse institutional investors, marking a notable achievement in infrastructure financing.
Bond Issue Details
The Infrastructure Investment Trust's board has approved the allotment of Non-Convertible Debentures (NCDs) with the following specifications:
- Number of NCDs: 60,000 units
- Face Value: Rs 1 lakh per unit
- Total Value: Rs 600 crore
- Tenure: 19 years and 1 month
- Issuance Type: Private placement
- Date of Allotment: February 21, 2025
Investment Participation
The bond issue garnered strong interest from various institutional investors, including:
- Banks
- Insurance companies
- Development financial institutions
Purpose and Utilization
The funds raised through these listed, secured Non-Convertible Debentures will be utilized for refinancing the debt of Cube InvIT's recently acquired Special Purpose Vehicle. This strategic refinancing is expected to optimize the trust's debt structure and enhance financial efficiency.
Management Perspective
Pankaj Vasani, Group CFO of Cube InvIT, expressed satisfaction with the market response, stating that "The feedback from capital markets during this raise accentuates strong investor confidence in Cube InvIT's financial prudence and growth potential."
About Cube Highways Trust
Cube Highways Trust operates as an irrevocable trust established under the Indian Trusts Act, 1882, and is registered with SEBI as an Infrastructure Investment Trust. The organization is backed by a prestigious group of international investors:
- I Squared Capital
- A wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA)
- British Columbia Investment Management Corporation
- Mubadala Investment Company (Abu Dhabi's sovereign investor)
The successful completion of this bond issue was supported by key financial and legal partners, including Trilegal and Cyril Amarchand Mangaldas as legal advisors, and Catalyst Trusteeship Limited as the debenture trustee.
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