GIC and KKR purchase 42% stake in IndiGrid

PowerlinesSingapore’s sovereign wealth fund, GIC, and global investment firm, KKR, have collectively acquired a 42% stake in infrastructure investment trust, India Grid Trust (IndiGrid). GIC invested $142 million while KKR invested $157 million. According to a statement, KKR plans to acquire an additional 15% of IndiGrid’s total units from Sterlite Power after applying to become a sponsor of the former. KKR’s acquisition is its first infrastructure investment in Asia. In a separate transaction, it will also purchase a majority shareholding in Sterlite Investment Managers Limited, a Sterlite Power-owned investment manager. IndiGrid plans to buy five electricity transmission assets with $1.66 billion from Sterlite Power with the capital injection. Harsh Shah, member and chief executive of IndiGrid said: “With this new capital investment, we will reach our goal of INR17,000 crores of assets under management and are well on our way to achieving INR 30,000 crores of assets under management by 2022 while also providing stable and predictable returns to our investors.” Sanjay Nayar, member and chief executive of KKR India said: “India holds a tremendous opportunity for infrastructure investment, in the trillions of dollars in the coming decades.” He added: “We believe addressing the country’s infrastructure needs is a priority for the government, industries and communities across India alike, and we are excited to make our foray into this market and contribute as a solutions provider.” In other news, GIC recently acquired a 10% stake in Terminal Investment Limited (TIL), the world’s sixth-largest container terminal operator from Global Infrastructure Partners and other investors, the sovereign wealth fund said in a statement on May 3, 2019. ©2019 funds global asia

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