Canada-based Ontario Teachers' Pension Plan Board has committed $175 million (around Rs 1,333 crore) to boost alternative investment company KKR & Co’s road platform in India.
US-based KKR’s road platform boasts a portfolio of 12 road assets, including six that are proposed to be acquired pursuant to definitive agreements, as per a statement. The platform includes Highway Concessions One (HC1) and the 7 highway assets KKR had acquired from Global Infrastructure Partners (GIP) last year.
These assets are a mix of toll & hybrid annuity model (HAM) projects stretching over 910 kilometers across 11 states.
For Ontario Teachers, this transaction marks its third infrastructure investment in India following purchase of 25% stake in the National Highways Infra Trust late last year and an anchor investment in the National Investment & Infrastructure Fund (NIIF).
“We are delighted to extend our relationship with Ontario Teachers and work together to capture the strong investment interest in the sector and contribute to the development of India’s transport infrastructure,” said Hardik Shah, partner and head of India Infrastructure at KKR.
The global PE fund KKR also has plans to acquire more assets in the future.
“We’re delighted to take our investments further in high-quality Indian infrastructure and to collaborate with KKR on creating greater connectivity for the country via an improved road network,” said Bruce Crane, managing director of Infrastructure - Asia-Pacific at Ontario Teachers.
Besides HC1, KKR’s other recent infrastructure investments in the country include setting up of Virescent Renewable Energy Trust, India’s first renewable energy infrastructure trust and India Grid Trust (IndiGrid), a leading infrastructure investment trust (InvIT).