Canada Pension Plan Investment Board commits Rs 1850 cr to Kotak Infrastructure Investment Fund

Global investment management firm Canada Pension Plan Investment Board (CPPIB) said it has committed Rs 1850 crore towards the first close of Kotak Infrastructure Investment Fund (KIIF), a closed-end private debt fund by Kotak Investment Advisors Limited, in the second quarter of fiscal 2023.

“Committed Rs 18.5 billion (C$310 million) to the first close of Kotak Infrastructure Investment Fund (KIIF). KIIF is being raised by Kotak Investment Advisors Limited and will provide senior and secured financing to operating infrastructure projects in India,” CPPIB said in its FY23 second quarter results.

KIIF aims to help selected infrastructure companies in India improve their financial sustainability by providing debt restructuring through private capital mobilised from institutional investors. The fund will invest in operating infrastructure companies primarily by providing senior, secured long-term debt solutions, and may also acquire equity shareholding of the borrower in conjunction with the debt facilities. Target sectors mainly include transportation, renewable power, water, logistics, digital infrastructure, and EV transport infrastructure in India, as per project details outlined by Asian Infrastructure Investment Bank (AIIB).

The Canadian pension fund also invested Rs 357.5 crore (C$60 million) in National Highways Infra Trust, an infrastructure investment trust sponsored by the National Highways Authority of India.

CPP Investments ended its second quarter of fiscal 2023 with net assets of $529 billion, up from $523 billion at the end of the previous quarter. The $6 billion increase in net assets for the quarter consisted of $1 billion in net income and $5 billion in net transfers from the Canada Pension Plan (CPP), the company said in a statement.

“Our portfolio remains resilient despite inflationary pressures, increases in central bank rates and the continued impact of the war in Ukraine, which resulted in the continued decline in global financial markets during the quarter,” said John Graham, President and CEO of CPP Investments said.

The Fund, which includes the combination of the base CPP and additional CPP accounts, achieved five year and 10-year annualized net returns of 8.5 per cent and 10.1 per cent, respectively.

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