Canada's CPP boosts Indian toll roads, investing C$297 million in national infrastructure
The Canada Pension Plan Investment Board (CPP Investments) has made a significant follow-on investment of $297m into the National Highways Infra Trust (NHIT), an infrastructure investment trust sponsored by the National Highways Authority of India (NHAI).
This investment aims to support the acquisition of seven brownfield toll roads owned by NHAI, aligning with the Government of India's National Monetisation Pipeline initiative.
With this latest investment, CPP Investments' stake in NHIT remains at 25 percent, bringing its total investment in the trust to $614m. This move underscores CPP Investments' continued commitment to India's infrastructure development, deemed essential for the country's economic growth.
James Bryce, managing director and head of infrastructure at CPP Investments, highlighted India as a key market for their investments, emphasizing the strategic importance of NHIT in expanding India's road network.
He expressed confidence in the investment's potential to contribute to high-quality infrastructure development across India and to generate strong risk-adjusted returns for the CPP Fund.
The acquisition will expand NHIT's portfolio from eight to 15 toll roads, enhancing its coverage to over 1,500 kilometers across nine Indian states, including Assam, Gujarat, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan, Uttar Pradesh, Telangana, and West Bengal.
This expansion reflects NHIT's significant role in the development, maintenance, and management of national highways in India, as facilitated by NHAI since its establishment in 1988.
