KKR and Ontario Teachers’ Pension Plan Board (“Ontario Teachers”) have today announced the signing of agreements under which Ontario Teachers’ will invest up to $175 million (CAD220 million) in KKR’s road platform in India, which includes Highway Concessions One.
Today, the road platform comprises a portfolio of 12 road assets, including six that are proposed to be acquired pursuant to definitive agreements that have been signed.
This includes a diversified mix of toll and annuity roads, with a total length of more than 910 kilometers across 11 states, including Chhattisgarh, Gujarat, Karnataka, Madhya Pradesh, Maharashtra, Meghalayan, Odisha, Rajasthan, Tamil Nadu, Telangana, and West Bengal.
The platform possesses the significant potential to scale, with plans in place to acquire more assets in the future.
Speaking on the development, Bruce Crane, Managing Director, Infrastructure, Asia-Pacific at Ontario Teachers’ said, “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.”
Further commenting on the strategic partnership, Hardik Shah, Partner and Head of India Infrastructure at KKR, said, “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. We are delighted to extend our relationship with Ontario Teachers and work together to capture the strong investor interest in the sector and contribute to the development of India’s transport infrastructure.”
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.
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”).
The transaction is expected to be completed in Q3 2022, subject to regulatory approvals and closing conditions.