Cube Highways has signed definitive agreements for the sale of a minority stake to Japan Highways International (JHI), a Japanese consortium of infrastructure investors led by Mitsubishi Corporation. JHI’s investment reaffirms Cube Highways’ position as a leading owner and operator of highways in India and follows the recent announcement of a minority stake sale to a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA).
Cube Highways is an independent, professionally-managed platform that owns and operates more than 1,700 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 roads. Last week the company announced agreements to acquire Salem Tollways and Kumarapalyam Tollways, in the state of Tamil Nadu.
“With the entry of JHI, Cube Highways has expanded its set of leading infrastructure investors from across the globe. Our new partners bring world-class technical and engineering capabilities, as well as deep global experience, to help further expand the platform. This new capital also demonstrates investor confidence in the future of Cube Highways and the growth potential of the highways sector in India,” said Gautam Bhandari, Director of Cube Highways and Partner of I Squared Capital.
Hyun-Chan Cho, Regional Industry Head, Infrastructure & Natural Resources, IFC, said, “We welcome JHI as our new partner in Cube Highways. As one of the oldest and leading investors in the Indian infrastructure space, IFC is very pleased to see other international investors joining hands to support the growth of the highways sector. High-quality transport and logistics infrastructure is key to sustaining India’s growth and ensuring that economic opportunities are available to communities across urban as well as rural India.”