NATIONAL, 19 APRIL, 2023 (GPN): Canadian pension investment manager British Columbia Investment Management Corporation (“BCI”) and Abu Dhabi’s sovereign investor Mubadala Investment Company (“Mubadala”) have become the new anchor investors in Cube Highways Trust (“CHT”), an infrastructure investment trust (“InvIT”) in India. 

Cube Highways Fund Advisors Private Limited, the Investment Manager to InvIT, announced the listing of its fully subscribed privately placed ordinary units to INR 52,258.27 million (c. US$ 630 Million). The InvIT has a diversified portfolio of 18 toll and annuity road assets with an aggregate length of 1,423.60 kilometres. BCI, Mubadala and domestic institutional investors have subscribed to the ordinary units.

The first tranche of assets held by the InvIT will have 17 NHAI toll road assets and one NHAI annuity road asset. These road assets are located across 11 states, including Andhra Pradesh, Bihar, Haryana, Jharkhand, Karnataka, Kerala, Rajasthan, Tamil Nadu, Telangana, Uttar Pradesh, and West Bengal. In addition, pursuant to a right of first offer, CHT will also have an opportunity to access a pipeline of seven highway assets.

Mr. U K Sinha, an independent director at Cube Highways Funds Advisors Private Limited (acting as the Investment Manager for the InvIT), said, “This marks a significant milestone in the development of India’s infrastructure sector and InvIT in particular. The trust in Cube by such marquee investors affirms its capability and personnel. The Board and Cube’s team are eager to work with all stakeholders to continue generating value and worth for all. I’m thrilled to participate in Cube’s journey towards a more prosperous and sustainable future.”

The InvIT has also signed a facility agreement with the State Bank of India for an amount of INR 100 billion (c. USD 1.2 billion) to be used for refinancing of the existing debt within the initial portfolio.

The InvIT has been rated “Provisional Ind AAA/Stable” for its loan facilities from three rating agencies, including Crisil Ratings Limited, ICRA Limited and India Ratings & Research Private Limited. The ratings derive comfort from the portfolio’s track record and geographic diversification, cash pooling structure, strong debt protection metrics and experienced management team.

Zaman Velji, Senior Managing Director, Infrastructure & Renewable Resources at BCI, said, “BCI’s investment in Cube Highways is in line with our long-term strategy of investing in infrastructure platforms that meet the essential needs of the communities they serve. Additionally, this investment increases and diversifies our exposure in the infrastructure sector, as well as in India, enabling BCI to contribute to national economic growth. We look forward to working with Cube Highways to build long-term value for our public sector clients.”

Saed Arar, Executive Director – Head of Traditional Infrastructure, Mubadala, said, “India offers the most significant global growth opportunity in roads with a robust and well-regulated market for infrastructure investment. With more than $100 billion allocated to the road construction program, and a potential $20bn+ addressable acquisition pipeline, Cube Highways is the most well positioned platform for Mubadala to drive investments in roads and capitalize on this market opportunity. As a responsible investor, we are proud to be working with Cube Highways and supporting India’s road infrastructure ambitions to further deliver socioeconomic benefits to the country.”

Citigroup Global Markets India Private Limited; & J. P. Morgan India Private Limited are the placement agents and investment bankers.

About Cube Highways

The Cube Group is a 100% institutionally owned platform backed by a diversified investor base, including I Squared Capital, a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA), and Japan Highways International BV. It is engaged in implementing the public-private partnership (“PPP”) model in the country’s highways sector to operate and manage highway projects in association with the central and state governments.

For more information, please visit: www.cubehighwaystrust.com

About British Columbia Investment Management Corporation (BCI)

BCI is among the largest institutional investors in Canada with C$211.1 billion under management as at March 31, 2022. Based in Victoria, British Columbia, with offices in Vancouver and New York City, BCI invests in: fixed income and private debt; public and private equity; infrastructure & renewable resources; as well as real estate equity and real estate debt. With our global outlook, we seek investment opportunities that convert savings into productive capital that will meet our clients’ risk and return requirements over time.

BCI’s infrastructure & renewable resources program, valued at C$20.2 billion, invests in tangible long-life assets that include a portfolio of direct investments in companies across a variety of sectors spanning regulated utilities, energy, telecommunications, and transportation. BCI invests in companies operating in stable and mature regulatory environments, that provide opportunities for future capital investments, and have the potential to generate steady returns and cash yield for our clients. The program is diversified across North America, Asia, Australia, Europe, and South America.

For more information, please visit: bci.ca

About Mubadala Investment Company

Mubadala Investment Company is a sovereign investor managing a global portfolio, aimed at generating sustainable financial returns for the Government of Abu Dhabi. 

Mubadala’s $284 billion (AED 1045 billion) portfolio spans six continents with interests in multiple sectors and asset classes. We leverage our deep sectoral expertise and long-standing partnerships to drive sustainable growth and profit, while supporting the continued diversification and global integration of the economy of the United Arab Emirates.   

For more information, please visit: www.mubadala.com