Cube Highways Trust Raises Rs 1,150 Crore Via Bonds

Cube Highways Trust has raised Rs 1,150 crore by issuing senior secured non-convertible debentures, known as NCDs. The bonds carry an annual interest rate of 7.50 percent, which will be paid out every three months over a period of five years. Axis Bank Limited and ICICI Bank Limited acted as key institutional investors in this financial deal. The money raised from this issuance will go toward paying off existing debt and funding ongoing capital projects. This transaction forms part of a larger funding plan by the trust that aims to reach a total of Rs 4,500 crore.

Context

Non-convertible debentures are fixed-income financial instruments that companies and trusts use to raise money from investors for a set period. Large institutional investors often buy these bonds to earn steady returns while managing their investment portfolios. Such funding methods allow infrastructure trusts to finance large-scale projects without relying entirely on traditional bank loans.