India Development News & Foreign Investment Opportunities

Cube Highways Acquires Five Hybrid Annuity Model Projects

Investors with strong interests in Highways


Investors with strong interests in Highways


Dilip Buildcon


Singapore-based Cube Highways and Infrastructure III Pte Ltd has entered into an agreement with Dilip Buildcon Limited to acquire five new hybrid annuity road projects in the Indian states of Maharashtra, Telangana and Odisha.

Following the transaction, the Cube Highways portfolio will have 18 projects and over 6,000 lane-kilometers of highways across India.

“The strong operating and management capabilities of the Cube Highways team has made the company the partner of choice for road developers in India. Following this transaction, Cube Highways will have nine hybrid annuity projects with a total of 2,has coe u015 lane-kilometers of roads,” said Gautam Bhandari, Director of Cube Highways and Managing Partner of I Squared Capital.

“We continue to seek partnerships with quality developers under the hybrid annuity model to diversify the portfolio with both availability- and demand-based revenue,” he said on 3 Sept 2019.

Under the Hybrid Annuity Model (HAM), these projects will construct and operate nearly 1,200 lane-kilometers of national highways. HAM projects are a hybrid between conventional EPC contracts and BOT (Annuity) projects using an innovative concession model developed by the National Highway Authority of India (NHAI).

Under the concession, 40% of project cost is paid by NHAI during the construction phase with the balance distributed as regular annuity payments on a fixed amortization schedule over a 15-year operational period.

The completion of the transaction is contingent upon the fulfilment of customary regulatory and lender approvals.

Cube Highways is investing in road and highway projects, along with other select infrastructure sectors in India. It is a portfolio company of I Squared Capital through its ISQ Global Infrastructure Fund II.

Cube Highways is an independent, professionally managed platform leveraging the extensive transportation experience of its management and execution advisory teams.

Shareholders of Cube Highways are leading international investors consisting of I Squared Capital and a wholly owned subsidiary of the Abu Dhabi Investment Authority.

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