Canada Pension Plan Investment Board invests C$60 mn in National Highways Infra Trust

• CPP Investments has already invested C$ 257 million in NHAI InvIT’s IPO through an institutional placement in November 2021.
  
• Following the current transaction, CPPIB will continue to hold 25% of the units in NHAI InvIT.
  
• National Highways Infra Trust will use the proceeds to acquire three brownfield toll roads, currently owned by NHAI.
  

Canada Pension Plan Investment Board (CPP Investments) today announced an equity investment of C$60 million in National Highways Infra Trust.

The trust is an infrastructure investment trust or InvIT, sponsored by the National Highways Authority of India (NHAI).

This investment is done through an institutional placement undertaken by NHAI InvIT. CPP Investments also invested C$ 257 million in NHAI InvIT’s IPO in November 2021.

“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, CPP Investments.

Following the current transaction, CPPIB will continue to hold 25% of the units in NHAI InvIT.

Proceeds from the institutional placement will be used to acquire three brownfield toll roads, currently owned by NHAI. The acquisition will increase the size of NHAI InvIT’s portfolio from five to eight toll roads – all of which have been acquired from NHAI.

“We believe institutional capital will continue to play a meaningful role in addressing India’s infrastructure investment needs,” Lawrence added.

NHAI is a statutory authority set up in 1988, responsible for developing, maintaining and managing national highways in India. Its total portfolio now spans approximately 636 kilometers across seven Indian states: Gujarat, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan, Uttar Pradesh and Telangana.

Headquartered in Toronto, with offices in Hong Kong, London, Luxembourg, Mumbai, New York City, San Francisco, São Paulo and Sydney, CPP Investments is governed and managed independently of the Canada Pension Plan and at arm’s length from the government.

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