Cube Highways Trust raises Rs 1,150 crore via AAA-rated bonds

Cube Highways Trust has secured Rs 1,150 crore through the issuance of senior secured non-convertible debentures rated AAA, according to the announcement. The debentures carry a competitive coupon rate of 7.50% per annum, payable on a quarterly basis over a five-year tenure. Axis Bank Limited and ICICI Bank Limited were identified as major institutional investors in the transaction, underscoring strong institutional confidence in the offering.

The proceeds from this issuance will be allocated toward debt refinancing activities and capital expenditure for ongoing project development. This fundraising represents a significant component of Cube Highways Trust's broader financing initiative, which targets total capital mobilization of Rs 4,500 crore. The AAA rating on the senior secured debentures reflects the high creditworthiness of the instrument and the issuer's strong financial position.

For investors and market participants, this capital raise is noteworthy as it demonstrates continued institutional appetite for infrastructure-backed debt securities in the Indian market. The infrastructure sector remains a key growth driver for India's economy, and investment-grade fundraising by established highway operators reflects sustained confidence in the sector's fundamentals. The participation of major banking institutions as investors also signals their assessment of the risk-return profile of the offering. Such debt issuances by infrastructure trusts provide diversified financing options and help distribute refinancing risks across the capital markets, supporting the continued development of critical transportation infrastructure in India.

Source: Markets-Economic Times