This comes after the company won the Rs 5,011 crore worth TOT3 bundle in December 2019
Cube Highways and Infrastructure has entered into a Rs 3,500 crore agreement with the State Bank of India (SBI) to purchase the third bundle of toll-operate-transfer (TOT) road assets auctioned by the National Highways Association of India (NHAI).
This comes after the company won the Rs 5,011 crore worth TOT3 bundle in December 2019. The TOT3 bundle comprises 2,265 km lane across four states.
Cube’s new agreement with SBI for a 20-year loan facility with an interest of 8 percent is among the largest financings in India’s road sector, Mint reported.
The SBI deal was delayed due to COVID-19 as the public lender wanted to observe pick-up in toll collections after the lifting of lockdown, a source told the paper. “With toll collections seeing a healthy recovery post unlocking of the economy, SBI was comfortable with the financing," they added.
Moneycontrol could not independently verify the report.
Transaction of the December 2019 bundle has also been delayed due to the COVID-19 pandemic, but once through, the deals will make Cube the country’s largest roads buyer with 8,400 km of road assets across 27 highways.
NHAI’s TOT model allows companies to pay the Centre a one-time concession fee for rights to operate, maintain and collect toll on select national highway stretches for a period of 30 years.