Cube Highways Trust (Cube InvIT), managed by Cube Highways Fund Advisors Pvt. Ltd., has successfully closed its latest non-convertible debenture (NCD) issuance, raising a total of Rs 1,152 crore.
The issuance comprised two tranches: a 3-year series with a coupon rate of 7.2503% and a 7-year series at 7.3006%. Both series were oversubscribed, reflecting strong investor confidence in Cube InvIT’s creditworthiness and strategic direction. The funds raised will be utilised to refinance existing floating-rate loans, aligning with Cube InvIT’s strategy to lock in fixed-rate borrowings during favourable interest rate cycles. This move is expected to reduce the Trust’s overall borrowing cost by 12 basis points and increase the proportion of fixed-rate borrowings to 28% of total obligations.
The 3-year series attracted bids approximately 2.6 times the offer size, with participation from five mutual funds and a non-banking finance company. The 7-year series saw bids about 2 times the offer size, with four insurance companies, a pension fund, and a non-banking finance company among the investors. Group CFO of Cube InvIT, stated, “The proceeds from this transaction are proposed to be used to refinance existing floating rate loans, thus not increasing overall debt outstanding, and align with our strategy of locking in fixed-rate borrowings during favourable movement of the interest rate cycle.”
Vinay Sekar, CEO of Cube InvIT, added, “We are pleased to welcome several marquee insurers, mutual and pension funds to our investor family as a part of this transaction. This will further diversify Cube InvIT’s funding sources, complementing existing relationships with banks, multilateral and development finance institutions.” The strong demand for the NCDs underscores investor confidence in Cube InvIT’s robust governance, high-quality infrastructure portfolio, and commitment to sustainable financial practices. The Trust’s diversified investor base, comprising institutional investors such as mutual funds, insurance companies, and pension funds, enhances its financial stability and positions it well for future growth in India’s infrastructure sector.
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