Ontario Teachers’ Pension Plan Invests in KKR Indian Road Platform
Posted on 04/20/2022
Private equity firm KKR & Co, Inc. and Ontario Teachers’ Pension Plan Board (Ontario Teachers’) signed agreements under which Ontario Teachers’ will invest up to US$ 175 million in KKR’s road platform in India, which includes Highway Concessions One.
Currently, the road platform comprises a portfolio of 12 road assets, including six that are proposed to be acquired pursuant to definitive agreements that have been signed. This includes a diversified mix of toll and annuity roads, with a total length of more than 910 kilometers across 11 states, including Chhattisgarh, Gujarat, Karnataka, Madhya Pradesh, Maharashtra, Meghalaya, Odisha, Rajasthan, Tamil Nadu, Telangana, and West Bengal. The platform possesses significant potential to scale, with plans in place to acquire more assets in the future.
The roads sector is a core area of focus for KKR’s infrastructure in India. This transaction follows KKR’s recent infrastructure investments in the country, including its acquisition of Highway Concessions One, Virescent Infrastructure and the setting up of Virescent Renewable Energy Trust, India’s first renewable energy infrastructure trust (InvIT), and India Grid Trust (IndiGrid), a leading infrastructure investment trust.
For Ontario Teachers’, the transaction marks its third infrastructure investment in India, following its investment of a 25% stake in the National Highways Infra Trust late last year. Ontario Teachers’ is also an anchor investor in the National Investment and Infrastructure Fund (NIIF).
The transaction is expected to be completed in the third quarter of 2022, subject to regulatory approvals and closing conditions.
Keywords: Ontario Teachers Pension Plan.