Canadian pension investment manager British Columbia Investment Management Corporation (BCI) and Abu Dhabi-based sovereign investor Mubadala Investment Company have joined as anchor investors in Cube Highways Trust (CHT), an infrastructure investment trust (InvIT) in India. Cube Highways Fund Advisors Private Limited, the Investment Manager to InvIT, has listed its fully subscribed privately placed ordinary units worth INR 52,258.27 million ($630 million). CHT’s portfolio comprises 18 toll and annuity road assets, spanning an aggregate length of 1,423.60 kilometers, and has attracted investment from BCI, Mubadala, and domestic institutional investors.
The first tranche of assets under CHT includes 17 National Highways Authority of India (NHAI) toll road assets and one NHAI annuity road asset. These assets are located across 11 Indian states, such as Andhra Pradesh, Bihar, Haryana, Jharkhand, Karnataka, Kerala, Rajasthan, Tamil Nadu, Telangana, Uttar Pradesh, and West Bengal. CHT also has the opportunity to access a pipeline of seven additional highway assets through a right of first offer. The State Bank of India has signed a facility agreement with CHT for INR 100 billion ($1.2 billion) for refinancing existing debt within the initial portfolio.
Cube Highways Trust has received a “Provisional Ind AAA/Stable” rating for its loan facilities from three rating agencies, including Crisil Ratings Limited, ICRA Limited, and India Ratings & Research Private Limited. This rating reflects the portfolio’s track record, geographic diversification, cash pooling structure, strong debt protection metrics, and experienced management team. Both BCI and Mubadala emphasized the importance of infrastructure investments in India, with Cube Highways being well-positioned to capitalize on the country’s growing road infrastructure market.
U K Sinha, an independent director at Cube Highways Funds Advisors Private Limited, said that the trust placed in Cube by such marquee investors validates its capabilities and personnel. He expressed excitement about participating in Cube’s journey toward a more prosperous and sustainable future. Zaman Velji of BCI and Saed Arar of Mubadala both emphasized the importance of Cube Highways in contributing to national economic growth and supporting India’s road infrastructure ambitions for delivering socioeconomic benefits to the country.