NIIF, India’s First Sovereign Wealth Fund, Secures $600 Million From Canada Pension Plan Investment Board

The largest ever outlay for road construction comes in the backdrop of the NDA implementing GST. (Ramesh Pathania/Mint)

National Investment and Infrastructure Fund (NIIF) of India and Canada Pension Plan Investment Board (CPPIB) have announced an agreement for CPPIB to invest up to US$600 million through the NIIF Master Fund. The agreement includes a commitment of US$150 million in the NIIF Master Fund and co-investment rights of up to US$450 million in future opportunities to invest alongside the NIIF Master Fund.

NIIF is India’s first sovereign wealth fund that was set up by the Government of India in February 2015. NIIF is anchored by the Government of India in collaboration with leading global and domestic institutional investors. The fund is vested with a mandate to invest in infrastructure assets and related businesses that are likely to benefit from the long-term growth trajectory of the Indian economy

With CPPIB’s investment, NIIF Master Fund now has US$2.1 billion in commitments and has achieved its initially targeted fund size. In addition, NIIF Master Fund investors have co-investment rights of US$3 billion, which will enable the NIIF Master Fund to invest at the scale required for India’s large infrastructure requirements.

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

CPPIB will also become a shareholder in National Investment and Infrastructure Fund Limited, NIIF’s investment management company.

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