Cube Highways enters into concession agreement with NHAI for toll road project in Karnataka.
Singapore based Cube Highways and Infrastrure, a portfolio company of I Squared Capital, has entered into a concession agreement with the National Highways Authority of India (NHAI) to operate an 80-kilometer, four-lane toll road connecting Neelamangala and Devihalli in Karnataka. As part of the transaction, Cube Highways substituted the former concessionaire, Lanco Devihalli Highways by
Singapore based Cube Highways and Infrastrure, a portfolio company of I Squared Capital, has entered into a concession agreement with the National Highways Authority of India (NHAI) to operate an 80-kilometer, four-lane toll road connecting Neelamangala and Devihalli in Karnataka.
As part of the transaction, Cube Highways substituted the former concessionaire, Lanco Devihalli Highways by incorporating a new SPV Nelamangala Devihalli Expressway (NDEPL) pursuant to the substitution rights of the senior lenders in the concession agreement.
“We are pleased to complete the first substitution transaction, of this kind, in the road sector in India,” said Gautam Bhandari, Director of Cube Highways and Managing Partner at I Squared Capital.
He further said that Cube Highways' strong record of deal closures during the Covid-19 pandemic is a testament to its disciplined deal making approach and operational capabilities.
"Cube Highways worked tirelessly with NHAI and the senior lenders through the economic dislocation to complete this transaction under the substitution mechanism of NHAI, setting a benchmark for such transactions in the future," Bhandari added.
NDEPL is an important passenger corridor linking Bengaluru to Mangalore in Karnataka and has had a strong recovery in traffic and daily revenues following the Covid lockdown. The project has been operational since June 2012 and was awarded as a 25-year concession after competitive bidding in 2008 for strengthening and widening a two-lane highway to a four-lane configuration, the company said.
"NDEPL further expands Cube Highways' geographic presence to south India and diversifies the traffic flows for the portfolio which has 27 highways with nearly 8,400 lane-kilometers across India, including assets under operations and various stages of closing," it said.
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