Cube Highways Trust raises Rs 1,150 crore through AAA-rated debentures

Cube Highways Trust has raised Rs 1,150 crore through a sale of five-year, AAA-rated non-convertible debentures to Axis Bank and ICICI Bank.

The infrastructure investment trust, commonly known as Cube InvIT, will use the proceeds to refinance its existing senior debt and commercial paper, as well as to fund capital expenditure and maintenance across its road projects.

ICICI Bank took the largest share of the debt issue, subscribing to Rs 600 crore, while Axis Bank took the remaining Rs 550 crore. The fundraising was conducted on the National Stock Exchange's electronic bidding platform, with the process wrapping up on September 28, 2026.

The terms of the deal

The debentures carry an annual coupon rate of 7.50%, paid quarterly, and have a face value of Rs 1 lakh each.

Both banks split their investments between anchor and non-anchor allocations. For ICICI Bank, this meant Rs 180 crore as an anchor investor and Rs 420 crore through the standard route. Axis Bank put in Rs 165 crore as an anchor investor and Rs 385 crore as a non-anchor investor.

Because Axis Bank is the parent company of Axis Trustee Services—the trustee for Cube Highways Trust—the transaction required formal clearance as a related-party transaction. The trust said it secured the necessary approvals from both its audit committee and its board of directors before proceeding.

Bigger funding plans

This Rs 1,150 crore issue is not an isolated deal. It is part of a much larger, board-approved financing programme designed to raise up to Rs 4,500 crore. The trust plan to bring in this money in stages using a mix of debentures, commercial paper, and direct rupee loans.

Cube Highways Trust has a significant footprint in India's toll road sector. It transition from a privately listed trust to a publicly listed entity on July 31, 2026.

The trust is managed by Cube Highways Fund Advisors and backed by a group of heavy-hitting global sovereign and institutional investors. These include I Squared Capital, the Abu Dhabi Investment Authority through its subsidiary Platinum Rock, British Columbia Investment Management Corporation (BCI), and Abu Dhabi's Mubadala Investment Company.