Cube raises ₹3,500 cr to buy NHAI toll roads

Cube Highways and Infrastructure on Tuesday announced an agreement with State Bank of India (SBI) for a ₹3,500 crore term loan facility to purchase the third bundle of road assets auctioned under the government’s toll-operate-transfer (TOT) model.

This is one of the largest financings in India’s road sector, said Cube Highways, which was set up by global infrastructure investment firm I Squared Capital and counts Abu Dhabi Investment Authority among its shareholders.

The company had won the TOT3 bundle with a bid of ₹5,011 crore in December. However, the transaction was delayed because of the impact on toll revenues following the coronavirus outbreak and the nationwide lockdown. Once the transaction is completed, Cube, India’s most prolific road assets buyer, will have 8,400 lane km across 27 highways, including assets that are under various stages of closing.