Canada's CPPIB pumps more money into NHAI's infrastructure investment trust

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Canada Pension Plan Investment Board (CPPIB) today announced an equity investment of Rs 357 crore (C$60 million) in an infrastructure investment trust (InvIT) sponsored by the National Highways Authority of India (NHAI).

This investment in National Highways Infra Trust comes after a C$257 million initial investment in NHAI InvIT's initial public offering in November last year for 25 percent of the units.

CPPIB will continue to own 25 percent of the NHAI InvIT units after the latest transaction.

"We have been an active investor in India’s infrastructure sector since 2014. This follow-on investment further deepens our commitment to the NHAI InvIT platform to acquire road projects across the country, ultimately delivering solid long-term returns for the CPP Fund," said Scott Lawrence, Managing Director & Global Head of Infrastructure, CPPIB.

Also read | NHAI's InvIT raises funds through follow-on issuance for acquisition of three road projects

Three brownfield toll roads that are currently owned by NHAI will be purchased with the proceeds from the latest deal. The acquisition will expand National Highways Infra Trust's portfolio to eight toll roads from five, all of which were acquired from NHAI, a statutory organisation established in 1988 by an Act of parliament and charged with planning, maintaining, and operating national highways.

The total portfolio of NHAI InvIT currently spans across six Indian states—Gujarat, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan, Uttar Pradesh, and Telangana—and covers an area of about 636 kilometres.