AustralianSuper, Australia’s largest superannuation fund, and Ontario Teachers’ Pension Plan (Ontario Teachers’), Canada’s largest single-profession pension plan, have each signed agreements for investments of up to $1 billion with National Investment and Infrastructure Fund (NIIF) of India’s Master Fund.
The agreements include commitments of $250 million each in the Master Fund and co-investment rights of up to $750 million each in future opportunities alongside the Fund.
This marks the third close of the NIIF Master Fund. AustralianSuper and Ontario Teachers’ will now join the Government of India (GOI), Abu Dhabi Investment Authority (ADIA), Temasek , HDFC Group, ICICI Bank, Kotak Mahindra Life Insurance and Axis Bank as investors in the Fund, said an NIIF statement.
AustralianSuper and Ontario Teachers’ will also become shareholders in National Investment and Infrastructure Fund Limited, NIIF’s investment management company.
Domestic investors HDFC Life and Kotak Mahindra Life Insurance have further committed ₹600 million in the third round.
With this, NIIF Master Fund becomes the largest infrastructure fund in India with assets under management of over $1.8 billion and a co-investment pool of $2.5 billion, which will enable the fund to invest at the scale required for the large infrastructure requirements in India.
Sujoy Bose, Managing Director & Chief Executive Officer of NIIF, said: “We are delighted to welcome two of the world’s leading pension funds as investors in the NIIF Master Fund and as shareholders of National Investment and Infrastructure Fund Limited, alongside other eminent investors.”
The fund invests in equity capital in core infrastructure sectors in India with a focus on transportation, energy and urban infrastructure.
“AustralianSuper and Ontario Teachers’ are among the most respected infrastructure investors in the world and bring considerable global perspective and value to NIIF. Their significant investments demonstrate the international interest in Indian infrastructure and reconfirms the many strengths of NIIF, which positions it as one of the primary Indian pooling vehicles for global capital,” Mr. Bose added.
The Master Fund has a tenure of 15 years and is denominated in Indian Rupees to suit the requirements of the infrastructure sector.
Dale Burgess, Senior Managing Director, Infrastructure & Natural Resources of Ontario Teachers’, said: “NIIF’s investment strategy aligns with the long-term and partner-oriented investing approach we have successfully used in other regions.”
Mark Delaney, Chief Investment Officer with AustralianSuper, said: “India’s burgeoning infrastructure market is among the largest in Asia, which presents many opportunities for investment. We are pleased to have entered into this agreement with the NIIF Master Fund and to be shareholders of National Investment and Infrastructure Fund Limited and look forward to participating in a strong pipeline of projects across a range of sectors.”
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