Canada’s CDPQ, Piramal form $300 million credit financing platform
1 min read . Updated: 06 Feb 2020, 12:37 PM IST- CDPQ will contribute 75% of the investment and Piramal will commit the remaining 25%
BENGALURU : Canadian investor Caisse de dépôt et placement du Québec (CDPQ) and Piramal Asset Management Pvt Ltd, a unit of Piramal Enterprises Ltd (PEL), have formed a $300 million special purpose vehicle to target private credit financing opportunities in India.
CDPQ will contribute 75% of the investment and Piramal will commit the remaining 25%.
The platform will offer private credit solutions to companies across various sectors including manufacturing, consumer, industrial, healthcare, pharmaceuticals and logistics among others.
“This platform aims to leverage the significant market opportunity for alternative pools of capital to provide valuable solutions in the private credit space," Ajay Piramal, chairman, Piramal Group said in a statement.
Piramal had earlier this week said that the company is looking to forge co-investment opportunities with foreign investors and banks.
“Piramal Enterprises is a like-minded partner with a solid market position and deep knowledge of India’s industry and financial sector. This is another opportunity for CDPQ to work with the best partners in a market where we see many possibilities over the long term," said Anita M. George, executive vice-president and head of strategic partnerships, Growth Markets, CDPQ.
“Through our partnership, we are able to support growing businesses and invest in India’s thriving entrepreneurship," she added.
Since 2017, CDPQ has partnered with PEL, having recently invested $250 million in its compulsory convertible debentures. CDPQ’s real estate subsidiary, Ivanhoé Cambridge, had earlier committed $250 million towards a co-investment platform with PEL to provide long-term equity to blue-chip residential developers.
