Cube Highways to acquire five Hybrid Annuity Model

10 Sep, 2019

SINGAPORE, 3 SEPTEMBER 2019: Cube Highways and Infrastructure III Pte. Ltd., (Cube Highways), a portfolio company of I Squared Capital through its ISQ Global Infrastructure Fund II, has entered into an agreement with Dilip Buildcon Limited to acquire five new hybrid annuity road projects in the Indian states of Maharashtra, Telangana and Odisha. Following the transaction, the Cube Highways portfolio will have 18 projects and over 6,000 lane-kilometers of highways across India.

“The strong operating and management capabilities of the Cube Highways team has made the company the partner of choice for road developers in India. Following this transaction, Cube Highways will have nine hybrid annuity projects with a total of 2,015 lane-kilometers of roads,” said Gautam Bhandari, Director of Cube Highways and Managing Partner of I Squared Capital. “We continue to seek partnerships with quality developers under the hybrid annuity model to diversify the portfolio with both availability- and demand-based revenue.”


Under the Hybrid Annuity Model (HAM), these projects will construct and operate nearly 1,200 lanekilometers of national highways. HAM projects are a hybrid between conventional EPC contracts and BOT (Annuity) projects using an innovative concession model developed by the National Highway Authority of India (NHAI). Under the concession, 40 percent of project cost is paid by NHAI during the construction phase with the balance distributed as regular annuity payments on a fixed amortization schedule over a 15-year operational period.

The completion of the transaction is contingent upon the fulfilment of customary regulatory and lender approvals 

About Cube Highways: Cube Highways and Infrastructure III Pte. Ltd. (Cube Highways) is a Singapore-based company investing in road and highway projects, along with other select infrastructure sectors in India. Cube Highways is an independent, professionally managed platform leveraging the extensive transportation experience of its management and execution advisory teams. Shareholders of Cube Highways are leading international investors consisting of I Squared Capital and a wholly owned subsidiary of the Abu Dhabi Investment Authority.

Contact: Andreas Moon, Managing Director and Head of Investor Relations, I Squared Capital, +1 (786) 693-5739, an


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