Cube Highways Trust has informed the Exchange regarding Disclosure of material issue
Awaiting price reaction for this filing.
Cube Highways and Infrastructure III Pte. Ltd. (CH III), one of the Sponsors of Cube Highways Trust (InvIT), has disclosed creation of encumbrance on 78,044,436 units — about 5.81% of total outstanding units, or 27.91% of CH III's own holding of 279,654,900 units (20.81% stake). The encumbrance is in favour of Sumitomo Mitsui Banking Corporation (Singapore Branch) for the period 22.09.2025 to 25.09.2026. It is an indirect pledge linked to a new secured syndicated loan facility being arranged by ISQ II (an associate company of co-sponsor ISQ) from Standard Chartered Bank (Singapore) and Sumitomo Mitsui Banking Corporation to fund the acquisition of Chenani-Nashri Tunnelway Limited (CNTL) — a road asset in India. Since CH III's shares are being pledged for the facility, lenders gain indirect recourse to the InvIT units held by CH III in case of enforcement.
This is a short-term, one-year encumbrance, but it means lenders could indirectly sell up to ~5.8% of outstanding InvIT units if the group defaults on the acquisition loan — a risk for unit holders to monitor. The underlying purpose is to fund a strategic highway asset acquisition (Chenani-Nashri Tunnelway) which, if successful, could expand the InvIT's road portfolio and be value-accretive for unitholders.