04 Dec, 2020
SINGAPORE, DECEMBER 04, 2020 Cube Highways and Infrastructure II Pte Ltd (“Cube Highways”), a portfolio company of I Squared Capital, has entered into a binding agreement to acquire a 100 percent stake of Chenani–Nashri Tunnelway Limited (CNTL), an operating road tunnel in the union territory of Jammu and Kashmir, India, from IL&FS Transportation Network Limited.
At nine kilometers, the Dr. Syama Prasad Mookerjee Road Tunnel is a two-lane, bi-directional tunnel connecting Chenani to Nashri and provides a vital link between Jammu and Srinagar, the two most important cities in Jammu and Kashmir. The tunnel, which is the longest in India, has reduced the travel time between these cities by more than two hours.
Operational since March 2017, the road is an annuity-based concession from the National Highway Authority of India (NHAI). This project receives a fixed, bi-annual payment from NHAI and will provide stable and predictable cash flows to the Cube Highways’ portfolio.
“We are pleased to add the first road tunnel asset to the Cube Highways portfolio. This investment expands Cube Highways’ geographic presence in North India and further reinforces the company’s leading position in the Indian highways sector. Operations and maintenance of this complex asset requires specialized technical capabilities and are a testament to the strength of Cube Highways’ in-house technical and project management expertise.” said Gautam Bhandari, Director of Cube Highways and Managing Partner at I Squared Capital
The Cube Highways portfolio has 27 highways with nearly 8,400 lane-kilometers across India, including assets under operation and various stages of closing. The completion of the transaction is contingent upon the fulfilment of customary approvals and other contractual conditions precedent.
About Cube Highways: Cube Highways and Infrastructure II Pte. Ltd. (Cube Highways) is a Singapore-based company investing in road and highway projects, along with other select infrastructure sectors in India. 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 including I Squared Capital, a wholly-owned subsidiary of the Abu Dhabi Investment Authority and International Finance Corporation.