Cube Highways Acquires Farakka-Raiganj Highways Limited

Business Wire India

Cube Highways II, a portfolio company of I Squared Capital through its ISQ Global Infrastructure Fund II, has acquired 100 percent of Farakka-Raiganj Highways Limited (FRHL), an operating toll road in the state of West Bengal, India, from HCC Concessions Limited. Following the transaction, the Cube Highways group will have a portfolio of 27 highways with nearly 8,400 lane-kilometers across India, including assets under various stages of closing.


FRHL operates a 100-kilometer, four-lane toll road connecting Farakka and Raiganj, in the eastern state of West Bengal. Awarded as a 30-year concession after competitive bidding in 2010 for strengthening and widening a two-lane highway to a four-lane configuration, the project has been operational since October 2016. Forming part of National Highway-12, FRHL is on the arterial route in West Bengal, connecting major tourist attractions and trade centers from the state capital Kolkata to Siliguri and Darjeeling. The road is also a feeder route to North Bengal, North-East India, Nepal and Bhutan.


“Completing the acquisition during the challenges of the Covid-19 pandemic is a testament to the operational capabilities of the Cube Highways team and the strength of the platform. Cube Highways worked constructively with the seller to restructure the transaction so that risks are more appropriately shared to achieve a win-win outcome,” said Gautam Bhandari, Director of Cube Highways and Managing Partner of I Squared Capital. “Successful closing of this transaction, despite COVID, demonstrates the execution leadership of Cube Highways and makes it a partner of choice for all leading Indian infrastructure road construction companies that seek to monetize their assets and recycle capital.”


FRHL expands Cube Highways’ geographic presence to East India, diversify its traffic flows and component portfolio. The road has shown a healthy rebound of traffic following the lockdown, underscoring its strategic location with resilience and stickiness of the commercial traffic bound towards north Bengal and northeastern India.


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.