08 Sep, 2020
SINGAPORE, SEPTEMBER 8 , 2020 Cube Mobility Investments Pte. Ltd (“Cube Highways”), part of the Cube Highways group, has entered into Financing Agreements, through its Indian SPVs formed for the TOT 3 bundle, with State Bank of India (SBI) for availing the term loan facility of INR 3,500 Crores towards the TOT-Bundle 3 projects. This is a landmark transaction and one of the largest financings in the Indian road sector till date.
The Toll Operate Transfer model developed by National Highways Authority of India (NHAI) uses a onetime, upfront concession fee paid to the government in return for the right to operate, maintain and collect tolls over 30 years on select operational national highway stretches. Cube Highways had been awarded TOT- Bundle 3 Projects, by NHAI, consisting of 9 road stretches with 2,265 lane kilometers across four geographically diverse states in India. These project stretches have shown a healthy rampup of the traffic after the lockdown was lifted.
“We are very pleased to complete a crucial milestone for taking over the TOT-Bundle3 project stretches from NHAI. Achieving this milestone amidst the Covid-19 pandemic reflects Cube Highways’ strong franchise in India and the robust nature of the projects.” said Gautam Bhandari, Director of Cube Mobility Investments Pte. Ltd. and Managing Partner, I Squared Capital. “We are also pleased to partner with SBI, India’s largest bank, on this milestone financing. Throughout this process, SBI and Cube team worked in close co-ordination to achieve this tremendous outcome in midst of this extraordinary situation. We look forward to further re-enforcing our relationship with SBI in this sector.”
India Ratings has assigned a AA rating for this project. Following the transaction, the Cube Highways group will have 27 highways across India, totaling close to 8,400 lane-kilometers, including assets under various stages of closing.
About Cube Highways: Cube Mobility Investments 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, firstname.lastname@example.org and email@example.com