Cube Highways Trust Raises ₹1,150 Crore via AAA-Rated Non-Convertible Debentures
Cube Highways Trust has successfully executed a significant capital raise, garnering Rs.1,150 crore through the issuance of senior, secured, listed, rated, redeemable, non-convertible debentures (NCDs). These NCDs carry an appealing coupon rate of 7.50% per annum, payable quarterly, with a tenor of five years. The auction, conducted via the NSE Electronic Bidding Platform, was completed on September 28, 2026. The funds are earmarked for refinancing existing senior debt and capital expenditure related to various project Special Purpose Vehicles (SPVs), underscoring Cube InvIT’s strategic approach to managing its financial obligations and capitalizing on investment opportunities.
The distribution of NCD subscriptions reveals strong institutional interest, with Axis Bank Limited and ICICI Bank Limited respectively securing allocations of Rs.550 crore and Rs.600 crore. Notably, Axis Bank’s dual allocation as both Anchor and Non-Anchor Investor signifies a robust confidence in the offering. The cumulative approval for a financing programme up to Rs.4,500 crore indicates a comprehensive strategy for future capital mobilization, demonstrating Cube InvIT’s intent to stabilize and expand its financial footing.
This transaction not only illustrates Cube InvIT’s proactive refinancing strategies but also highlights the potential liquidity and attractive yield characteristics of the debenture market in the current economic landscape. As Cube InvIT transitions from a private to a public listed InvIT, this move positions it advantageously to meet both current obligations and future investment needs, enhancing its operational capabilities within the Indian infrastructure sector. Investors may lookout for ongoing developments as Cube continues to navigate this financial landscape.
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The successful issuance of secured NCDs at a competitive coupon rate represents a potentially lucrative opportunity for investors looking for income stability in a low-yield environment. As Cube InvIT expands its financing capabilities, investors should assess its long-term growth strategy and consider positioning within their portfolios.
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Source: The Economic Times
(Expert Note: This intelligence brief was structured and verified by the Wealthova editorial desk.)