KKR and Ontario Teachers’ to Invest ₹5,500 Crore in Road Infrastructure Trust (InvIT)
Global private equity giant KKR and Canadian pension fund Ontario Teachers’ Pension Plan (Ontario Teachers’) have committed a combined ₹5,500 crore to Highways Infrastructure Trust (HIT), a trust that owns and operates key highways in India. This investment will play a crucial role in funding recent acquisitions, including 12 road assets from PNC Infratech, marking a significant move in India’s infrastructure sector.
KKR’s investment arm, Nebula Asia Holdings II Pte. Ltd., will contribute ₹3,756 crore, while Ontario Teachers’ will invest ₹1,695 crore. As the sponsor of HIT, KKR is deeply involved in the trust’s expansion, with Ontario Teachers’ holding a notable stake as a significant shareholder. The funds raised will be directed towards the acquisition of additional road assets by HIT. Notably, the trust recently entered into an agreement to acquire 12 road assets from PNC Infratech and its subsidiary PNC Infra Holdings for an enterprise value of ₹9,006 crore. This move is part of KKR’s broader strategy in India’s road sector. In 2021, KKR made its entry by acquiring Highway Concessions One (HC1) and seven highway assets spanning 487 kilometers from Global Infrastructure Partners (GIP). Additionally, KKR acquired the Navayuga Udupi Tollway for ₹924 crore. In 2022, KKR established the Highways Infrastructure Trust (HIT), which has now expanded to manage 15 road assets, covering 3,580 lane kilometers across nine states in India.
The investment from KKR and Ontario Teachers’ marks another milestone in HIT’s growth trajectory and highlights the increasing interest of global investors in India’s rapidly expanding road infrastructure sector. With these acquisitions, HIT continues to solidify its position as a key player in the Indian toll road and highway sector. This deal comes amid rising infrastructure investments in India, where other international players, including Canadian pension fund Caisse de dépôt et placement du Québec (CDPQ), are also eyeing opportunities to invest in the country’s growing road sector. CDPQ is currently in discussions to raise capital for its infrastructure trust, Maple Infrastructure Trust, indicating the ongoing global interest in India’s transportation infrastructure.
