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IFC Invests Rs 860 Crore in India's First SLB in Road Sector Issued by Cube InvIT.

Banking & Finance | Dated: 17 Feb 2025

In February 2025, the International Finance Corporation (IFC), based in Washington (USA) and part of the World Bank Group (WBG), invested Rs 860 crore (approximately USD 98.35 million) in India's first Sustainability-linked Bond (SLB) in the road sector, issued by Cube Highways Trust (Cube InvIT), located in Noida (Uttar Pradesh, UP).

🎯 Key Highlights:

  • - The investment aims to enhance critical road infrastructure and bolster climate resilience in highway development across India.
  • - The SLB will fund the acquisition of NAM Expressway Limited (NAM), a key highway linking Chennai (Tamil Nadu) and Hyderabad (Telangana), and support Cube InvIT's long-term corporate goals, including sustainability and inclusion initiatives.

💡 Other Important Facts:

  • (i) Cube InvIT raised funds through long-term non-convertible debentures, offering a 7.67% coupon, with a tenure of 17 years and 10 months. The debentures include an anchor portion of Rs 258 crore.
  • (ii) IFC’s investment will mobilize additional capital, driving advancements in India’s road infrastructure while maintaining adherence to international Environmental, Social, and Governance (ESG) standards.
  • (iii) Cube InvIT is an irrevocable trust formed under the Indian Trusts Act, 1882 and is registered with the Securities and Exchange Board of India (SEBI) as an InvIT.

📚 Test Your Knowledge:

Recently, which organization invested Rs 860 crore in India's first Sustainability-linked Bond (SLB) in the road sector?

Correct Answer: International Finance Corporation (IFC)

🚀 Quick Recap: