Latest news with #CubeHighwaysTrust
Reuters
a day ago
- Business
- Reuters
Three Indian infra investment trusts eye $500 million debt in coming weeks, sources say
MUMBAI, July 24 (Reuters) - Three Indian infrastructure investment trusts, including the National Highways Infrastructure Trust, are planning to raise up to 43 billion rupees ($499 million) through corporate bonds in the coming weeks, three sources familiar with the matter said. NHIT is in talks with merchant bankers and investors to raise around 15 billion rupees through three-year bonds, the sources, who did not want to be named because the discussions are private, said. Cube Highways Trust ( opens new tab is likely to tap the market for about 10 billion rupees in debt, with maturities ranging between three and five years. Meanwhile, IRB Infrastructure Trust ( opens new tab is preparing for its debut bond issuance, targeting roughly 18 billion rupees through a dual-tranche offering with five and 10-year tenors. None of the infrastructure investment trusts, or InvITs, responded to Reuters emails seeking comment. InvITs typically raise capital through a combination of units and bonds. Bond issuances have gained traction in recent months amid falling yields. According to Prime Database, InvITs and real estate investment trusts (REITs) together raised more than 178 billion rupees in the January–June period. All three InvITs are in discussions with investors, including the International Finance Corporation, which has previously invested in debt issued by several InvITs, including Cube Highways, according to a termsheet from an earlier offering. NHIT last tapped the bond market in January, while Cube Highways raised funds through bonds in April. Insurance firms and pension funds participated in NHIT's previous bond offering, and the sources said they expect mutual funds to show interest this time, given that the tenor aligns with their investment horizon. ($1 = 86.3825 Indian rupees)
Reuters
4 days ago
- Business
- Reuters
India's investment trusts to expand debt fundraising as yields drop, analysts say
MUMBAI, July 21 (Reuters) - Debt fundraising by India's asset-backed investment trusts is expected to keep rising after exceeding $2 billion in the first half of 2025, as falling interest rates continue to fuel strong investor demand, analysts said. The real estate investment trusts (REIT) and infrastructure investment trusts (InvIT) raised over 178 billion rupees ($2.07 billion) in January-June, compared with 56 billion rupees in the same period last year, according to data aggregator Prime Database. "Bonds offer a lower cost of capital compared to traditional bank financing, especially for highly rated trusts with stable, long-term cash flows," Arka Mookerjee, partner at JSA Advocates and Solicitors, which provides legal advice to corporates. "The predictable income profiles of REITs and InvITs make them well-suited to debt financing, attracting institutional investors seeking yield-bearing, asset-backed instruments." Corporate bond yields have tumbled over the last few months, as the central bank infused liquidity and slashed interest rates by 100 basis points, while banks have lagged in lowering their lending rates. Embassy Office Parks REIT, IndiGrid Infrastructure Trust, Cube Highways Trust and Nexus Select Trust are among the firms that have tapped the bond market. Embassy REIT is planning another bond issue, Reuters reported last week, while others are also in early talks. Bonds typically have fewer restrictions than bank loans, allowing REITs to use the fund across multiple properties within the portfolio, said Lata Pillai, India senior managing director and head of capital markets, JLL, a global real estate services firm. The trusts, which need to disburse at least 90% of net distributable cash flows to unit holders, say cheaper funding allows them to provide better returns. Bond fundraising provides clarity to these trusts on planning their finances, while top credit ratings attract marquee investors such as mutual funds and insurers. "The AAA-rated structure gives greater credibility, visibility and better pricing," said Krishnan Iyer, chief executive officer at NDR InvIT, adding they also offer resilience to market volatility. With infrastructure and real estate sectors gaining momentum, investors see REITs and InvITs as a compelling blend of fixed-income stability and long-term growth, said Suresh Darak, founder of Bondbazaar, an online bond trading platform. ($1 = 86.1700 Indian rupees)
&w=3840&q=100)
Business Standard
27-06-2025
- Automotive
- Business Standard
HDFC MF buys ₹137 crore stake in Sundram Fasteners via open market deal
HDFC Mutual Fund on Friday bought shares of auto components supplier Sundram Fasteners for Rs 137 crore through an open market transaction. According to the bulk deal data on the BSE, HDFC Mutual Fund purchased 13.70 lakh shares or 0.65 per cent stake in Sundram Fasteners, at an average price of Rs 1,000 apiece. This took the deal value to Rs 137.02 crore. After the stake buy, HDFC Mutual Fund's holding in Chennai-based Sundaram Fasteners rose to 5.02 per cent from 4.37 per cent. Details of the sellers of Sundaram Fasteners shares could not be ascertained on the exchange. Shares of Sundaram Fasteners went marginally lower to close at Rs 999.25 per piece on the BSE. In a separate bulk deal on the NSE, Singapore-based Cube Mobility Investments offloaded 7.9 million units or 0.59 per cent unitholding in Cube Highways Trust for Rs 101 crore through an open market transaction. As per the data, these units were disposed of at an average price of Rs 127.50 per unit, taking the deal value to Rs 101.04 crore. Details of the buyers of Cube Highways Trust's units could not be identified on the National Stock Exchange (NSE). The Cube Highways Trust's units ended flat at Rs 127.50 per unit on the NSE. On Thursday, Cube Mobility Investments divested a 3.62 per cent unitholding in Cube Highways Trust for Rs 615 crore.
Mint
12-06-2025
- Business
- Mint
Cube Highways Trust completes acquisition of 2 highways in J&K from NIIF for ₹4,185 crore
The National Investment and Infrastructure Fund (NIIF) and Cube Highways Trust (Cube InvIT), which are both managed by Cube Highways Fund Advisors Pvt. Ltd, announced on Thursday the successful transfer of two operational annuity road projects from NIIF to Cube InvIT at an enterprise value of ₹ 4,185 crore. The two assets being transferred, Quazigund Expressway Pvt. Ltd (QB) and Athaang Jammu Udhampur Highway Pvt. Ltd (JU), spanning approximately 80km and located in Jammu and Kashmir. QB is one of the longest bi-directional tunnels in India, while JU is an essential link between Jammu and Srinagar. These assets have a residual concession life of over six years and are backed by fixed semi-annual annuity payments from the National Highways Authority of India (NHAI), providing stable and predictable cash flows that are insulated from traffic risks. The total enterprise value (including cash) of the two assets has been reported at ₹ 4,185 crore, subject to all closing adjustments as specified in the share purchase agreement (SPA), Cube Highways Trust said in a statement. "We are pleased to collaborate with NIIF on this important transaction. Today's acquisition will add to the high-quality, pan-India portfolio and enhance the Trust's exposure to fixed-revenue annuity assets that are unaffected by traffic risks and economic cycles. It also showcases Cube InvIT's disciplined capital allocation strategy and prudent use of its balance sheet for acquiring de-risked assets with strong fundamentals. This transaction is expected to be accretive to net distributable cash flows by ₹ 2.3 per unit annually, on average, over the next five years,' Vinay C. Sekar, chief executive officer (CEO) of Cube InvIT, said. Pankaj Vasani, Group chief financial officer (CFO) of Cube InvIT, said, "The strategic addition of these two completed and revenue-generating annuity assets optimally complements our existing portfolio of assets and grows the annuity exposure. Following this transaction, annuity revenue will account for 33% of Cube InvIT's total revenue. With a net debt to AUM ratio of 49% (post transaction) and a AAA-rated credit profile from Crisil, Icra and India Ratings, Cube InvIT remains well-positioned to pursue further value-accretive acquisitions.' Vinod Giri, managing partner, master fund, NIIF, said this transaction reflects NIIF's ability to underwrite complex transactions and acquire large infrastructure assets, de-risk them with a comprehensive plan, improve the credit profile, and create value. "These assets strongly reflect the core competency of Athaang, the wholly owned roads platform of NIIF, in managing high-quality infrastructure assets with operational excellence through best-in-class systems and processes. This track record enables us to deliver strong returns and attract global institutional capital.' Cube Highways Trust is an irrevocable Trust set up under the Indian Trusts Act, 1882 and registered with the Securities Exchange Board of India (Sebi) as an Infrastructure Investment Trust. It is backed by a diversified investor base, including I Squared Capital, a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA), British Columbia Investment Management Corp. and Abu Dhabi's sovereign investor Mubadala Investment Co. Cube Highways Trust is engaged in implementing the public-private partnership model in the country's highways sector to operate and manage highway projects in association with the Union and state governments.
Time of India
30-05-2025
- Business
- Time of India
Cube Highways Trust declares total distribution of ₹11 per Ordinary Unit for FY25
Cube Highways Trust ( Cube InvIT ) said its consolidated income grew 12.3 percent to ₹3,453 crore in FY25. Cube Highways Trust (Cube InvIT), managed by Cube Highways Fund Advisors Pvt Ltd, has approved a Distribution Per Unit (DPU) of ₹3.75 for the quarter, payable to ordinary unitholders. The total distribution for the quarter amounts to ₹500 crore. This distribution comprises ₹1.96 per unit as interest, ₹0.32 per unit as dividend, ₹1.46 per unit as repayment of SPV loan and ₹0.01 per unit as treasury income. The annual DPU of ₹11 declared for FY25 translated into ₹1,468 crore. The distribution comprises ₹5.71per unit as interest, ₹0.55 per unit as dividend, ₹4.71 per unit as repayment of SPV loan and ₹0.03 per unit as treasury income. The annual DPU for FY24 was ₹10.09. During the year, traffic volumes grew by 6.2 percent while the Asset Under Management (AUM) grew 25 percent to ₹32,266 crore as of March 31, 2025. The Net Debt to Enterprise Value ratio was maintained at 44.65 percent, offering ample headroom for growth. 'Our diversified highway portfolio continues to deliver strong and predictable traffic growth and continues to receive accolades for its O&M quality. We have successfully executed our strategy of deploying our debt capacity by acquiring seven road assets and, in addition, have executed binding Share Purchase Agreements (SPAs) for two additional acquisitions. These acquisitions are accretive to unitholder yields and value and will simultaneously de-risk the portfolio," Vinay Sekar , CEO of Cube InvIT, The record date for the distribution is June 2, 2025, and the distribution payout will be made on or before June 9, 2025. Cube Highways Trust is backed by I Squared Capital , a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA), British Columbia Investment Management Corporation, and Abu Dhabi's sovereign investor Mubadala Investment Company. The Trust operates and manages highway projects in association with the Central and state governments.
