Dutch pension fund manager APG Asset Management and Ajay Piramal-controlled Piramal Enterprises are planning to raise a second fund of about $500 million to invest in infrastructure projects in India, Business Standard reported.
For the first fund, the two entities had announced a joint corpus of $750 million in 2014, most of which has already been invested, the report said.
In 2014, the duo had announced a strategic alliance for investing in rupee denominated mezzanine instruments issued by infrastructure companies in India with a target investment of $1 billion over the next three years. PEL and APG had each initially committed $375 million for investments under the strategic alliance.
From the first fund, APG and Piramal Enterprises had announced an investment of $132 million (Rs900 crore) in Essel Infrastructure Ltd’s solar platform across India in 2016. A year-and-a-half later, they pumped in Rs 1,900 crore ($300 million) in Hyderabad-based renewable energy producer Mytrah Energy India Pvt. through mezzanine debt instruments in one of their largest transactions.
At the group level also, Piramal has been actively scouting for deals in the renewables and infrastructure sectors in India. In December, it signed a deal with Sadbhav Infrastructure Project Ltd (SIPL) to provide debt financing worth Rs 600 crore to complete the underlying road projects.
Globally, investors are increasingly looking at Indian infrastructure with interest.
In December, Mint reported that US-based investment firm Global Infrastructure Partners (GIP) is looking to raise India-focused fund this year, besides investing in buyout opportunities. The New York-based fund manager had bought the infrastructure investment business of IDFC Alternatives Ltd in April last year. The infrastructure portfolio of IDFC Alternatives consisted of two funds — India Infrastructure Fund and India Infrastructure Fund II — which have a total corpus of a little over $1.8 billion.
Beijing-headquartered Asian Infrastructure Investment Bank (AIIB) in June said that it will invest $200 million in India’s National Investment and Infrastructure Fund (NIIF) The fund was set up in 2015 as an investment vehicle for funding commercially viable greenfield, brownfield and stalled projects in the infrastructure sector. The same month, Mint reported that Morgan Stanley has raised close to $300 million in commitments for its India-focused infrastructure fund.
In October 2017, the Abu Dhabi Investment Authority announced an investment of $1 billion in National Investment and Infrastructure Fund’s Master Fund.