The Ontario Teachers’ Pension Plan Board is investing up to US$175 million in a portfolio of roads in India owned by US private equity firm KKR & Co. Inc, the Canadian pension fund’s third infrastructure investment in the South Asian country.
The portfolio comprises 12 road assets, including toll and annuity roads spanning more than 910 kilometres across 11 states.
The deal is expected to be completed in the third quarter, subject to regulatory approval, Ontario Teachers’ and KKR say in a statement on April 20.
The move comes after the pension fund acquired a 25% stake in National Highway Infra Trust from the National Highways Authority of India for C$248 million ($198.42 million) last November, more than two years after becoming an anchor investor in the National Investment and Infrastructure Fund of India with an investment of $1 billion.
“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,” Bruce Crane, managing director for Asia Pacific infrastructure at Ontario Teachers’, says in the statement.
Ontario Teachers had C$241.6 billion of net assets as of December 2021.