Cube Highways has announced the signing of definitive agreements for a minority stake sale to an entity that is ultimately wholly-owned by the Abu Dhabi Investment Authority (ADIA).

In addition, shareholders of Cube Highways will look to invest up to US$1 billion in new capital towards the acquisition of additional roads and highways, as well as new platform company investments in areas such NHAI’s Toll-Operate-Transfer (TOT) program, Hybrid Annuity Model (HAM) and other areas.

Cube Highways is an independent, professionally-managed roads and highways platform that owns and operates more than 1,300 lane-kilometers of highways in India. Formed by two leading global financial institutions, I Squared Capital and the International Finance Corporation (IFC), Cube Highways leverages the extensive transportation experience of its executive and engineering teams to manage a diverse portfolio of toll and annuity based roads, including the first AAA (SO) rated NHAI toll road in the country.

Abu Dhabi Investment Authority (ADIA) manages a global investment portfolio that is diversified across more than two-dozen asset classes and sub-categories. With a long tradition of prudent investing, ADIA’s decisions are based solely on its economic objectives of delivering sustained, long-term financial returns. Since 1976, the ADIA has been prudently investing funds on behalf of the Government of Abu Dhabi, with a focus on long-term value creation.

Gautam Bhandari, Director of Cube Highways and Partner of I Squared Capital said:

“Cube Highways, which we started from scratch, has built an experienced management team with world class engineering and operational expertise and has now become a recognized leader in the Highways sector in India,”

“We are pleased to partner with ADIA and IFC to further grow our highways portfolio in India, through careful selection of high quality assets. This new capital commitment comes at a very exciting time, especially following the positive reforms undertaken by NHAI and the Ministry of Road Transport and Highways.”

Hyun-Chan Cho, Regional Industry Head, Infrastructure & Natural Resources, IFC, comented:

“We welcome ADIA as our partner in addition to I Squared Capital and look forward to continuing to build India’s leading, professionally managed roads platform. IFC is pleased to re-affirm its conviction in the strong growth prospects of the highways sector in India, as building transport and logistics infrastructure is key to sustaining India’s growth and bringing economic opportunities to communities across urban and rural India.”