USD 175 M to be invested by Ontario Teachers’ in KKR’s road platform in India

The Ontario Teachers’ Pension Plan Board has pledged to invest USD 175 million in KKR’s road platform in India, the global investment firm said on Wednesday. According to a statement released here, both firms have inked agreements under which Ontario Teachers’ would invest up to USD 175 million (CAD220 million) in KKR’s road platform in India, which comprises Highway Concessions One. Following its acquisition of a 25% share in the National Highways Infra Trust late last year, Ontario Teachers’ is making its third infrastructure investment in India. KKR expects the acquisition to close in Q3 2022, subject to regulatory clearances and closing conditions.

The road platform now consists of a portfolio of 12 road assets, six of which are intended to be purchased subject to signed final agreements, according to the company. This contains a diverse mix of toll and annuity roads that span 11 states, including Chhattisgarh, Gujarat, Karnataka, Madhya Pradesh, Maharashtra, Meghalaya, Odisha, Rajasthan, Tamil Nadu, Telangana, and West Bengal, with a total length of over 910 kilometres.

“The platform possesses the significant potential to scale, with plans in place to acquire more assets in the future,” the company added. Commenting on the development, Bruce Crane, Managing Director, Infrastructure, Asia-Pacific at Ontario Teachers’ said, “We’re delighted to further our investments in high-quality Indian infrastructure and to collaborate with KKR on creating greater connectivity, and increased opportunities, for the country via an improved roads network.”

This deal follows KKR’s previous infrastructure investments in India, including the purchase of Highway Concessions One, Virescent Infrastructure, and the formation of Virescent Renewable Energy Trust and India Grid Trust.

Hardik Shah, Partner and Head of India Infrastructure at KKR, said, “Transportation forms an important part of KKR’s infrastructure strategy in India, where the government is focused on improving connectivity between cities and there is strong demand to expand the country’s network.”

He went on to say that the corporations will work together to capitalise on the high investor interest in the industry and help India’s transportation infrastructure expand.