Piramal Enterprises Ltd (PEL) is tying up with the worlds second largest pension fund APG Asset Management (APG) to invest $1 billion in Indias roads, ports, airports, power plants, telecom towers, the education and healthcare sectors.
The 50:50 joint venture (JV) will largely invest in debt or convertible instruments. Both PEL and APG are initially bringing in $375 million (Rs 2,250 crore) each and over the next three years plan to ramp up their investment to $1 billion (Rs 6,000 crore). The alliance with APG is one of the single largest FDI commitments to date in this space. Earlier this February, PEL had announced a similar JV with the Canada Pension Plan Investment Board (CPPIB) to set up a realty investment platform in India to offer rupee debt financing to residential projects in select leading Indian cities. But its $500 million corpus will be half the planned size of this new venture.
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