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Ontario Teachers’ to invest $175 mn in KKR India road platform

Global private equity major KKR and Ontario Teachers’ Pension Plan Board has signed an agreement under which Ontario Teachers’ will invest up to $175 million (Rs 1,330 crore) in KKR’s road platform in India, which includes Highway Concessions One, stated a company release.

KKR’s India road platform comprises a portfolio of 12 road assets. This includes a diversified mix of toll and annuity roads, with a total length of more than 910 kilometers across 11 states. The platform possesses significant potential to scale, with plans in place to acquire more assets in the future.

In July 2021, KKR had acquired Global Infrastructure Partners’ (GIP) entire interest in Highway Concessions One (HC1) and seven highway assets with a total length of 487 kilometers.

“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,” said Bruce Crane, Managing Director, Infrastructure, Asia-Pacific at Ontario Teachers’ Pension Plan.

“Transportation forms an important part of KKR’s infrastructure strategy in India, where the government is focused on improving connectivity between cities and there is strong demand to expand the country’s network,” said Hardik Shah, Partner and Head of India Infrastructure at KKR.

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, added the statement.

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).

In January this year, KKR closed its $3.9 billion debut Asia Infrastructure Fund to invest in assets and companies that cater to infrastructure space across Asia Pacific.

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