Global pension funds chase Indian infra for better returns

CPPIB, CDPQ, PSP Investments and APG invest Rs 11,000 crore in 28 months

Canada Pension Plan Investment Board (CPPIB) teamed with US-based alternative investment fund Kohlberg Kravis Roberts (KKR) last week to buy 10.3per cent stake in Bharti Infratel for Rs 6,193 crore. The Canadian pension fund contributed about Rs 2,000 crore.

In late 2014, CPPIB invested a similar amount in L&T IDPL, which develops highways, bridges, airports and real estate. This was the first direct investment by an international pension fund in Indian infrastructure.

In November 2015, another Canadian pension fund, Public Sector Pension Investment Board (PSP Investments), bought a 49 per cent stake in Reliance Infrastructure’s electricity generation, transmission and distribution