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AustralianSuper, Ontario Teachers to invest $1 bn each in India's NIIF fund

The two fund managers committed $250 million each in the Master Fund and co-investment rights of up to $750 million each in future opportunities alongside the NIIF Fund.

Raghavendra Kamath  |  Mumbai 

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AustralianSuper, Australia's largest superannuation fund, and Ontario Teachers' Pension Plan, Canada's largest single-profession pension plan, have signed agreements to invest up to $1 billion each in the Master Fund, said the National Investment and Fund (NIIF) on Tuesday.

The two fund managers committed $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 Master Fund. AustralianSuper and Ontario Teachers' will now join the India government, Abu Dhabi Investment Authority (ADIA), Temasek, HDFC Group, ICICI Bank, Kotak Mahindra Life Insurance and Axis Bank as investors in the fund, NIIF said.

AustralianSuper and Ontario Teachers' will also become shareholders in National Investment and Fund Limited, NIIF's investment management company. Domestic investors HDFC Life and Kotak Mahindra Life Insurance have further committed Rs 60 crore in the third round.

The investments will help make NIIF Master Fund the largest fund in the country with assets under management of over $1.8 billion and a co-investment pool of $2.5 billion. The NIIF Fund invests in equity capital in core infrastructure sectors like transportation, energy and urban infrastructure.

The Master Fund has a tenure of 15 years and is denominated in Indian rupees to suit the requirements of the infrastructure sector.

"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...," said Sujoy Bose, managing director & chief executive officer of NIIF.

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."

First Published: Tue, August 06 2019. 15:42 IST
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