Piramal Enterprises Limited (PEL) and APG Asset Management, the Dutch pension fund asset manager, 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 have each initially committed $375 million for investments under this strategic alliance.
This strategic pool of capital will focus on operational and near completion projects with limited execution risks and high visibility of cash flows coming from a portfolio of projects. The access to this source of capital will enable infrastructure players in India to retain their equity interest in the assets, while raising long term capital to help them complete their on-going infrastructure projects and enhance shareholder value.
Ajay Piramal, Chairman, PEL said, “We are pleased to be partnering with an institution like APG who is a like-minded, focused and committed global investor. This is an opportune time to be creating an aligned pool of capital to target what we believe to be compelling funding opportunities in the infrastructure sector in India. The alliance is consistent with PEL’s long-term plan and vision of playing a contributing role towards investments that promote growth. This is the single largest investment of APG in the unlisted space in India till date and underlines the confidence reposed by institutional investors in Piramal Group’s capabilities.”
EP News Bureau–Mumbai