Stories
Cube Highways Trust Raises ₹1,150 Crore via AAA-Rated NCDs for Refinancing and Capex
- •Cube Highways Trust (Cube InvIT) successfully secured ₹1,150 crore through the issuance of senior, secured, listed, rated, redeemable, non-convertible debentures (NCDs).
- •The NCDs, each with a face value of ₹1 lakh and a 7.50% quarterly coupon, have a five-year tenor and are AAA-rated.
- •Funds raised will be utilized for refinancing outstanding senior debt and commercial papers, as well as funding capital expenditure and maintenance for Project SPVs.
- •Institutional investors, including Axis Bank Limited (₹550 crore) and ICICI Bank Limited (₹600 crore), subscribed to the NCDs.
- •This issuance is part of Cube InvIT’s larger financing program to raise up to ₹4,500 crore through various instruments.
Key Questions Answered
Cube Highways Trust successfully raised Rs.1,150 crore through the issuance of AAA-rated non-convertible debentures (NCDs). The NCDs have a face value of Rs.1 lakh each, a coupon rate of 7.50% per annum payable quarterly, and a tenor of five years.
Institutional investors fully subscribed to the NCD issuance, with Rs.550 crore allocated to Axis Bank Limited and Rs.600 crore allocated to ICICI Bank Limited. Axis Bank was allotted Rs.165 crore as an Anchor Investor and Rs.385 crore as a Non-Anchor Investor, while ICICI Bank received Rs.180 crore and Rs.420 crore in those respective allocations.
The proceeds from the NCD issuance are proposed to be used towards refinancing outstanding senior debt facilities and commercial papers, either in part or in full. Additionally, the funds will be used to support capital expenditure and maintenance expenses for the Project SPVs.
