The proposed platforms for roads and renewable energy assets will see a total commitment of close to $2 billion
Piramal has already started scouting for assets that can be acquired under the two infrastructure platforms
Mumbai: The Ajay Piramal-led Piramal Group, which has set up platforms to acquire operating renewable energy and roads assets, has roped in Canada’s largest pension fund manager Canada Pension Plan Investment Board (CPPIB) as an anchor investor, said two people aware of the development.
The proposed platforms for roads and renewable energy assets will see a total commitment of close to $2 billion, according to one of the persons mentioned above.
“They (Piramal) have tied up commitments from CPPIB and another large European institutional investor. They will also bring on board two or three more investors," he said, seeking anonymity as he is not authorized to speak with the media.
Piramal plans to deploy around $1 billion in acquiring solar and wind assets under the renewable platform, while it would invest $800 million to $1 billion under the roads platform, said the second person mentioned above, also requesting anonymity.
Piramal has already started scouting for assets that can be acquired under the two platforms, he added.
Both Piramal Group and CPPIB said they cannot comment on Mint’s queries as they do not respond to “market rumours and speculation".
The infrastructure-focused platforms add to the existing tie-ups that Piramal has ventured into to tap opportunities in areas such as real estate and stressed assets.
The two entities will jointly invest about $1 billion in restructuring opportunities across India, along with the World Bank’s International Finance Corporation, which has also agreed to commit capital towards the fund.
The Canadian investor has also invested in the roads sector in India. In May 2018, CPPIB and Allianz Capital Partners, part of insurance giant Allianz, invested in the first private infrastructure investment trust in India—IndInfravit Trust, sponsored by L&T Infrastructure Development Projects Ltd. CPPIB invested approximately Canadian $200 million for 30% of IndInfravit units.
Other major sovereign and pension investors in the Indian infrastructure space include sovereign wealth funds GIC Holdings Pte Ltd, Abu Dhabi Investment Authority (ADIA) and CDPQ.