CPPIB commits up to $600m to India’s infrastructure fund

Canada Pension Plan Investment Board (CPPIB) is investing up to US$600 (€540m) in the Government of India-backed National Investment and Infrastructure Fund (NIIF).

In a joint statement, NIIF and CPPIB said CPPIB will commit US$150m in the NIIF Master Fund and co-investment rights of up to US$450m in future opportunities to invest alongside the NIIF Master Fund.

CPPIB – which manages the C$400.6bn (€274.6bn) funds of the Canada Pension Plan – will also become a shareholder in National Investment and Infrastructure Fund, NIIF’s investment management company.

CPPIB joins Abu Dhabi Investment Authority, AustralianSuper, Ontario Teachers’ Pension Plan, Temasek, Axis Bank, HDFC Group, ICICI Bank and Kotak Mahindra Life Insurance as investors in the NIIF Master Fund, alongside Government of India.

The CPPIB investment lifts commitments into the NIIF Master Fund to US$2.1bn, in line with the fund’s initial target size.

In addition, NIIF Master Fund investors have co-investment rights of US$3bn, which will enable the NIIF Master Fund to invest at the scale required for India’s large infrastructure requirements.

The NIIF Master Fund invests equity capital in core infrastructure sectors in India, with a focus on transportation, energy and urban infrastructure.

Sujoy Bose, managing director and CEO of NIIF, said: “CPPIB is a prominent and established investor in India, and their investment demonstrates the alignment of the NIIF Master Fund’s investment strategy with what large international investors seek in the infrastructure sector in India.

“With this fourth close of the NIIF Master Fund, we are pleased that the fund has achieved its initial target size of US$2.1bn with domestic and international investors of the highest reputation and quality.”

Scott Lawrence, managing director, head of infrastructure, CPPIB, said: “The opportunity to invest in, and alongside, NIIF complements our existing direct investment strategy in Indian infrastructure.

“Through this investment in the NIIF Master Fund, we are also able to deploy capital in additional projects and sectors across the country, providing further long-term opportunities for CPPIB to invest in Infrastructure in India.”