CPP stake in National Highways Infra Trust stays at 25% after $960m total investment
Canada Pension Plan Investment Board (CPP Investments) has announced a follow-on investment of $346m in National Highways Infra Trust (NHIT), an Infrastructure Investment Trust (InvIT) sponsored by the National Highways Authority of India (NHAI).
This represents CPP Investments’ third follow-on investment since its initial participation at NHIT’s inception in 2021.
The investment forms part of NHIT’s institutional placement capital raise.
According to the announcement, NHIT will use the funds to partially support its acquisition of 11 operating toll roads currently held by NHAI.
Following this transaction, CPP Investments will maintain a 25 percent stake in NHIT. Its total investment in the trust will rise to $960m.
“India remains a strategic focus for CPP Investments, with infrastructure such as toll roads playing a key role in driving the country’s rapid economic growth,” said James Bryce, managing director and head of Infrastructure at CPP Investments.
He said the ongoing investment in NHIT reflects the fund’s commitment to the platform and described the follow-on investment as a strong opportunity to generate attractive risk-adjusted returns for the CPP Fund.
NHIT’s acquisition will grow its portfolio from 15 to 26 operating toll roads, all previously owned by NHAI. NHAI, a statutory authority established in 1988 by an act of the Indian Parliament, oversees the development, maintenance, and management of national highways in India.
Post-transaction, NHIT’s network will extend over 2,300 kilometres across 12 Indian states: Andhra Pradesh, Assam, Chhattisgarh, Gujarat, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan, Uttarakhand, Uttar Pradesh, Telangana, and West Bengal.
According to Business Standard, the overall size of NHIT’s institutional placement amounted to $1.2bn, with participation from several domestic and global institutional investors including HDFC Mutual Fund, SBI Mutual Fund, Kotak Mahindra Life Insurance, and SBI General Insurance.
CPP Investments’ share accounts for nearly 29 percent of the total funds raised.
