IFC invests ₹860 cr in India's first sustainability bonds issued by Cube InvIT

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Subscribe to enjoy similar stories. NEW DELHI : International Finance Corporation (IFC), the private sector arm of the World Bank, has invested ₹860 crore ($98.35 million) in India’s first sustainability-linked bond (SLB) issue in the highways sector.

Issued by Cube Highways Trust (Cube InvIT), one of India's largest road sector-focussed infrastructure investment trusts (InvITs), sustainability-linked bond is a debt instrument whose financial terms are linked to the issuer's pre-defined sustainability or environmental, social, and governance (ESG) goals. This SLB—the first by a road InvIT in India—will fund the acquisition of NAM Expressway Limited (NAM), a strategic highway connecting Chennai and Hyderabad, and support Cube Highways Trust’s long-term corporate objectives, including sustainability and inclusion initiatives.

As anchor investor, IFC’s investment is set to mobilize additional capital, helping drive advancements in India’s road infrastructure while upholding global ESG standards. As demand for mobility to move people and goods around rises, transport-related emissions are also likely to swell.

Sustainability-linked finance (SLF) offers an innovative solution by aligning financing with sustainability efforts, linking proceeds to measurable outcomes, and driving meaningful progress toward a sustainable road transport sector. In a statement, Vinay Sekar, CEO of Cube InvIT, said, “This transaction demonstrates Cube InvIT’s ability to execute upon its strategy of deploying its debt capacity on accretive acquisitions; NAM is characterized by strong traffic fundamentals and positioned strategically as the shortest route between Chennai and Hyderabad.