CDPQ, KIA back ICICI-Tata power projects platform
Canadian pension plan Caisse de depot et placement du Quebec (CDPQ) and Kuwait Investment Authority (KIA) have backed a platform launched by India’s ICICI Venture and Tata Power that will invest in domestic power projects.
The State General Reserve Fund (SGRF) of Oman also invested in the vehicle, alongside ICICI and Tata. The platform will commit up to $850 million over the next 2-3 years with a view to taking controlling stakes in operational or near-operational thermal, hydroelectric and transmission assets.
"Insightful understanding of the lndian infrastructure ecosystem supported by discerning long-term global capital would provide a framework for investments with an optimum risk-return profile and also act as a catalyst for revitalization and growth of the Indian power sector," Mohit Batra, executive director at ICICI, said in a statement.
The strategy reflects a growing interest in specialized platforms that improve private equity access to long-horizon, asset-heavy industries.
"We are excited to be part of this platform that combines the expertise of two of India's leading business groups along with international reputed institutional investors," H.E. Abdulsalam Al Murshidi, executive president of SGRF added. "We are also particularly thrilled to invest in the world's fifth largest electricity producing country and increase our exposure to Indian infrastructure, a key beneficiary of India's economic development."
According to the International Energy Agency, India's energy sector requires investment of $2.8 trillion, three-quarters of which is needed for power projects. In 2014, the government adopted a five-year program to complete $250 billion of electrification projects, including conventional and renewable sources. The required investment is expected to come from both public and private sources.
Other recent Indian power investment activity includes a $125 million commitment to renewables platform, Hero Future Energies, by the International Finance Corporation. This followed Tata's acquisition of Welspun Renewables in what was believed to be the largest transaction yet recorded in the domestic renewables space.
More on South Asia
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.