Canada Pension Plan Investment Board (CPPIB) joins Abu Dhabi Investment Authority, AustralianSuper, Ontario Teachers’ Pension Plan, and Temasek.

The CPPIB will invest up to $600 million in the National Investment and Infrastructure Fund (NIIF) of India.

CPPIB’s investment is complementary to its existing direct investment strategy in Indian infrastructure. The pension now had access, through NIIF, to investment opportunities in additional infrastructure projects and sectors across India.

CPPIB has earmarked US$150 million in the NIIF Master Fund and US$450 million towards co-investment rights in future opportunities.

CPPIB and NIIF deal preceded by robust investment pipeline

The deal shows CPPIB’s investment preference for India. Previously, and since January this year, CPPIB committed over $1 billion of fresh investments in India with deals related to SBI Life Insurance Co. Ltd, e-commerce logistics firm Delhivery and green energy firm ReNew Power Ltd.

Moreover, in 2018, CPPIB and Allianz Capital Partners tied-up to acquire a 55% interest in IndInfravit Trust, the first private infrastructure investment trust in India.

NIIF – a mandate to invest equity capital in Indian infrastructure

According to the India Brand Equity Foundation, which is an Indian government body, India needs investments worth about $778 billion for highways, urban transport, and renewable energy by 2022.

Fund manager NIIF is a collaborative investment platform for both Indian and international investors looking to invest in domestic infrastructure. Though the Government of India anchors it, institutional investors majority own NIIF. Further, a team of professional managers is at its helm.

NIIF was set up in 2015 along the lines of a sovereign wealth fund with 49% equity held by the Union government and the rest by foreign and domestic investors.

It already has commitments worth $4 billion in its three earlier funds for investing in infrastructure assets and related businesses. It focusses on transportation, energy, and urban infrastructure.

“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,” said Sujoy Bose. He is MD and CEO of NIIF.

With this fourth close of the NIIF Master Fund, the fund has achieved its initial target size of US$2.1 billion.

Finally, The fund had gathered commitments from domestic and international investors of the highest reputation and quality, said Bose.

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