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Canada's CPPIB to invest $600 million in NIIF Master Fund

NIIF is India’s first sovereign wealth fund that was set up by the Government of India in February 2015.

ET Bureau|
Dec 05, 2019, 09.13 PM IST
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NIIF manages over $4 billion of capital commitments across three funds.
Mumbai: Canada's largest pension fund Canada Pension Plan Investment Board (CPPIB) has agreed to invest about $600 million in National Investment and Infrastructure Fund (NIIF) through the NIIF Master Fund. The agreement includes a commitment of $150 million in the NIIF Master Fund and co-investment rights of upto $450 million in future opportunities to invest alongside the NIIF Master Fund, said a press statement on Thursday.

NIIF is India’s first sovereign wealth fund that was set up by the Government of India in February 2015. It manages over $4 billion of capital commitments across three funds.

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

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.

In August, AustralianSuper - Australia’s largest superannuation fund and Ontario Teachers’ Pension Plan had agreed to invest $1 billion each with the NIIF Master Fund.

“CPPIB is a prominent and established investor in India, and 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, Managing Director & Chief Executive Officer of NIIF.

In April, NIIF had launched a platform that will invest in road projects in India, by joining hands with ROADIS, a wholly-owned subsidiary of the PSP Investments. The platform will invest up to $2 billion of equity to target Toll Operate Transfer models and acquisitions of existing road concessions.

Last year, NIIF had acquired IDFC Infrastructure Finance Limited (IDFC-IFL), a Non- Banking Finance Company that is registered an Infrastructure Debt Fund.
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