Canada Pension Plan Investment Board (CPP Investments) has made a further INR3.57bn (€44.7m) commitment to the National Highways Authority of India’s (NHAI) infrastructure investment trust (InvIT).
Following the current transaction, CPP Investments will continue to hold 25% of the units in NHAI InvIT.
The Canadian investor’s investment – done through an institutional placement undertaken by NHAI InvIT – follows an initial C$257m (€192m) investment in NHAI InvIT’s initial public offering in November last year.
CPP Investments said the proceeds from the institutional placement will be used to acquire three brownfield toll roads, currently owned by NHAI. The acquisition will increase the size of NHAI InvIT’s portfolio from five to eight toll roads – all of which have been acquired from NHAI.
Scott Lawrence, managing director and global head of infrastructure at CPP Investments, said: “We have been an active investor in India’s infrastructure sector since 2014.
“This follow-on investment further deepens our commitment to the NHAI InvIT platform to acquire road projects across the country, ultimately delivering solid long-term returns for the CPP Fund.”
To read the latest edition of the latest IPE Real Assets magazine click here.