Cube Highways plans to raise $500 million to refinance debt

MUMBAI : Cube Highways and Infrastructure, the biggest buyer of road assets in India, is looking to tap the dollar bond market to raise around ₹3,500 crore ($500 million), said two people aware of the development, requesting anonymity.

The proceeds of the proposed dollar bond issuance, said the first person cited above, will be used to refinance debt of the third bundle of toll-operate-transfer (TOT) road projects, which it had acquired from the National Highways Authority of India (NHAI) last November.

“The dollar bond market has a lot of liquidity going around and investors have shown a keen interest in debt paper coming out of Asia, including India. The pricing is also attractive from an issuer perspective and all these factors are making them (Cube Highways) consider a possible dollar bond transaction,” the person said.