Macquarie, Canada Pension are among bidders on India road assets

Macquarie Group Ltd and a Canadian Pension Plan Investment Board-backed investment trust are among the finalists to acquire road assets from India’s infrastructure fund, sources familiar with the matter revealed. The potential deal is estimated to range from $300 million to $500 million, though exact figures remain undisclosed. The assets, valued at $1 billion in enterprise terms, are part of the National Investment & Infrastructure Fund’s roads division, known as Athaang Infrastructure. Athaang’s portfolio comprises five highway segments, including toll roads, spanning a total of 230 kilometers across India.

While Macquarie and NIIF representatives haven’t yet responded to requests for comments, the Canadian pension plan, which supports the IndInfravit Trust in India, declined to provide a statement. InvITs, such as IndInfravit Trust, play a crucial role in financing large-scale infrastructure projects, aligning with India’s ambitious urban infrastructure investment targets outlined by Prime Minister Narendra Modi’s government, which necessitates an estimated $840 billion expenditure over 15 years. Macquarie has a history of significant investment in India’s roads, facilitating the country’s transportation expansion by pioneering the acquisition of local concessions.

NIIF represents India’s initiative to address the infrastructure spending gap by establishing a domestic capital-raising platform. Notable investors in NIIF include the Abu Dhabi Investment Authority and Singapore’s Temasek Holdings Pte. The Indian government holds a 49% stake in NIIF, which primarily focuses on investing in local entities involved in power plants, airports, and roads, and extends long-term loans through its shadow bank unit.