CPPIB commits $600m to state-backed Indian infrastructure fund
Canada Pension Plan Investment Board (CPPIB) has agreed to invest up to $600 million in NIIF Master Fund, a rupee-denominated infrastructure vehicle anchored by the Indian government.
The investment includes a $150 million LP commitment and $450 million in co-investment rights, while providing CPPIB with an unspecified stake in the fund management entity, National Investment and Infrastructure Fund (NIIF). It represents a fourth close for NIIF Master Fund, achieving the initial target for fund commitments of $2.1 billion and bringing co-investment capacity to an additional $3 billion.
A third close was reached in August, with AustralianSuper and Ontario Teachers’ Pension Plan each making $1 billion commitments comprised of $250 million fund positions and $750 million co-invest components. Previous investors also include Abu Dhabi Investment Authority, ICICI Bank, Temasek Holdings, HDFC Group, Kotak Mahindra Life Insurance, and Axis Bank. The fund remains open.
Focus sectors include transportation, energy and urban infrastructure, although CPPIB has indicated this remit may expand. “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,” Scott Lawrence, head of infrastructure at CPPIB, said in a statement.
NIIF now manages more than $4 billion of capital commitments across three funds focused on infrastructure and related businesses. These include a fund-of-funds to back third-party managers and a strategic fund focused on projects with longer-term horizons across various stages of development. Recent activity includes the acquisition of a port logistics company and participation in a $2 billion toll road project.
Earlier this year, NIIF joined BP and Everstone Capital in a $330 million commitment to Ayana Renewable Power, a platform established by UK development finance institution CDC Group. Ayana was launched last year to develop utility-scale solar and wind projects, as well as rooftop solar systems, in underserved states in India, as well as neighboring countries such as Bangladesh, Nepal, Bhutan, Myanmar, and Sri Lanka.
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