CPPIB commits USD 225 mn to India Resurgence Fund

Distressed assets buyout platform India Resurgence Fund (IndiaRF) has received a commitment of funds worth USD 225 million (approximately Rs 1,560 crore) from Canada Pension Plan Investment Board (CPPIB).

IndiaRF, which was set up with Piramal Enterprises Limited and Bain Capital Credit as joint sponsors, seeks to make investments in assets which are in distress through the purchase of existing debt and equity securities through bankruptcy courts or directly from lenders, or through newly issued securities, according to a statement.

It takes control over the turnaround of such assets through recapitalisation and operational improvements.

IndiaRF had earlier raised USD 100 million from the International Finance Corporation (IFC) through its distressed asset recovery program.

IFC has played the role of anchor investor for IndiaRF and will use its global expertise, alongside that of CPPIB, to help implement environmental, social and corporate governance standards at IndiaRF, the company said.

The India Resurgence Fund platform has received a commitment of USD 225 million from Canada Pension Plan Investment Board, through its wholly owned subsidiary, CPPIB Credit Investments Inc, the company said.

"We are pleased to anchor a fund that will have a meaningful impact in the non-performing loan (NPL) resolution space with a focus on revival and turnaround. We believe that helping to address India's NPL problem will have a very significant positive spillover effect in the economy, including saving and creating jobs," Mengistu Alemayehu, South Asia Director, IFC said.

"Our investment in IndiaRF represents an increase in our credit commitments in India, targeting attractive risk-adjusted returns in the sizeable Indian distressed credit space," John Graham, Senior Managing Director and Global Head of Credit Investments, CPPIB said.

IndiaRF has also raised capital from other international high-net-worth investors and family offices through the current round.

"The resolution of the NPL problem continues to be an important reform agenda for the government of India.... We are delighted that following the initial support from IFC to this platform, CPPIB has also increased its existing association with the Piramal Group and its engagement with India," said Piramal Group Chairman Ajay Piramal said.