By Staff
The Canada Pension Plan Investment Board is investing a further C$346M in National Highways Infra Trust, an Infrastructure Investment Trust sponsored by the National Highways Authority of India.
According to a press release, the CPPIB’s investment will be used by NHIT to partially fund
the acquisition of eleven operating toll roads currently owned by the NHAI.
The agreement will see the CPPIB continue to hold 25% of the
units in NHIT, with its total investment in the NHIT increasing to C$960M.
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“India remains a strategic focus for CPP Investments, with infrastructure such as toll roads playing a key role in driving the country’s rapid economic growth,” said James Bryce, the CPPIB’s managing director and head of infrastructure, in the release. “Our continued investment in NHIT since its founding is a testament to our commitment to this robust platform. We believe this follow-on investment is an excellent opportunity to generate attractive risk-adjusted returns for the CPP Fund.”
The CPPIB’s investment will help expand the NHIT’s portfolio from 15 to 26 operating toll roads, all of which have been acquired from the NHAI. Following the transaction, the NHIT’s total portfolio will span over 2,300 kilometers across 12 Indian states: Andhra Pradesh, Assam, Chhattisgarh, Gujarat, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan, Uttarakhand, Uttar Pradesh, Telangana, and West Bengal.
This is the CPPIB’s third follow-on investment in the India infrastructure project since its initial investment at the inception of the NHIT in 2021.
