Cube Invit

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Cube Highways and Infrastructure Pte Ltd. (referred to as “Cube” or the “Company”), an existing client of IFC (Project #34415, an equity investment to set up a platform company in Singapore to acquire operating road assets in India; relevant ESRS disclosed on September 30, 2014 and last updated on February 19, 2021: https://disclosures.ifc.org/project-detail/ESRS/34415/cube-highways), has sponsored Cube Highways Trust (the Trust), a private listed InvIT, which currently has 18 road assets (toll and annuity)  under it and can acquire 7 more assets (toll and HAM) under ROFO arrangement with Sponsors of Trust. The total Project cost is US$1,346 million, for refinancing of project level debt, and maintenance capex of the assets in the Company. IFC will provide a loan of US$126 million, and the rest will be financed by other lenders. The use of proceeds from IFC’s investment has been defined for this one road asset, namely Ghaziabad Aligarh Expressway Private Limited (GAEPL): A 125.175 km 4 laned road to be expanded to 6 lane, wherein 4 lanes have been operational since 2016, and acquired by Cube in 2022 connecting Ghaziabad to Aligarh in the state of Uttar Pradesh (the “Project”).The project involves: (i) expanding from four to six lane effectively for about 83.4 km (as the remaining length includes: 14.7 km of structures which are already built as per six lane configurations; 20.3 km of Aligarh bypass which will be retained as 4-lane; 7.1 km of existing road which will be provided for development of Power plant at Khurja (as 9.3-km greenfield bypass road is being constructed by NHAI through a separate EPC contractor as described below); and 0.750 km toll plaza pavement length; and (ii) operations and maintenance (O&M) of the road. The greenfield bypass road has been constructed by the National Highway Authority of India (NHAI) in order to replace a stretch of approximately 7.1 km of the existing road falling within the premises of a super thermal power plant to be constructed at Khurja (the “Khurja bypass”). Land acquisition for the Khurja bypass is the responsibility of NHAI along with ensuring all regulatory compliances. NHAI will hand over the constructed and ready to operate bypass to the concessionaire. Provisional completion certificate for the existing road was received from NHAI in June 2015 for 103.9 km and in November 2016 for 9.4 km stretch. The road traverses through predominantly agricultural land and built-up areas and towns, including the towns of Ghaziabad, Dadri, Sikandrabad, Bulandshahr, Khurja, Gabhana and Aligarh where bypasses have been provided.GAEPL has engaged Larsen & Turbo (L&T) as EPC contractor in June 2022, to undertake the proposed 6 laning of the project and early construction works for the same has commenced since August 2022 in priority sections of the road. Relevant information on the project road is disclosed with the ESRS of Project #34415 [https://disclosures.ifc.org/project-detail/ESRS/34415/cube-highways.