Canada’s Cdpq Eyes Infra, Vitality Transition Opportunities In India | Mint

Dwelling / Companies / Canada’s CDPQ eyes infra, energy transition opportunities in India

Canadian pension fund CDPQ began investing in India in 2016.  Bloomberg Top rate
Canadian pension fund CDPQ started investing in India in 2016.  Bloomberg 

3 min be taught . Updated: 24 Apr 2022, 11: 17 PM IST Swaraj Singh Dhanjal

  • The pension fund wants to level of curiosity on constructing partnerships and platforms where it would make investments and reinvest


Canadian pension fund Caisse de dépôt et placement du Québec (CDPQ) is bullish on infrastructure funding opportunities in India and wants to fund the obtain-zero transition skedaddle of Indian corporations, in accordance with senior executives.

CDPQ, which started investing in India in 2016, has to this level invested Canadian $8 billion within the country across infrastructure, proper property, public markets, fastened profits, and non-public equity. “We are very bullish on India. There would possibly perhaps be enormous doable for investments there. The governmentis inserting a spread of emphasis on—and money into—infrastructure, and it’s extremely interested by increasing the benefit of doing alternate in India. Accordingly, there are a spread of instruct opportunities for CDPQ, and we’re having a scrutinize at heaps of alternate options,” said Kenneth Juster, senior adviser, CDPQ World and a inclined US ambassador to India.

Given the prolonged-time duration, patient nature of its capital, the pension fund wants to level of curiosity on constructing partnerships and platforms to make investments and reinvest gigantic sums of capital over prolonged intervals quite than investing in single resources. “Our core technique is constructing partnerships where we can deploy positive capital, that scheme that every funding we invent brings prolonged-time duration impress to that alternate and to the planet. This also scheme that ESG and sustainability are well-known pillars of our funding technique. We want to assemble companies for the very prolonged time duration, where we can assign in meaningful governance, forge strong partnerships and alliances for sustainable instruct, and within the kill trace leaders of their respective sectors who can shape the prolonged trail by notion management and affect,” said Saurabh Agarwal, managing director, CDPQ India and managing director, infrastructure, South Asia and the Heart East.

“We are constructing prolonged-time duration platforms in step with our positive capital theme. It’s no longer about investing in a particular mission or a one-time transaction; we’re investing in maintaining companies, aligning with—and backing—our partners and the management groups, which permits us to repeatedly reinvest capital over a time duration because the corporate or partnership grows,” added Agarwal.

Through its platforms, the pension fund is investing across the spectrum from greenfield to brownfield initiatives in infrastructure and from stress to performing credit in fastened profits.

To illustrate, the fund has invested Canadian $650 million in its listing voltaic energy platform Azure Vitality since 2016, taking the corporate from 350 megawatts working alternate to a pair gigawatts (GW) working resources and a pipeline of 5GW.

It has also space up a platform for investments in roads called Maple Highways, which is within the midst of of shopping for 3 working resources, including one beneath the Nationwide Highways Authority of India’s Toll-Blueprint-Switch (TOT) mannequin.

“As well to renewable energy and roads, we’re also exploring funding partnerships in sectors corresponding to fibre, towers, and knowledge centres,” said Agarwal.

One other main replace that CDPQ is exploring is the energy transition home in India. “Vitality transition is incredibly significant for us. Alternate is merely no longer going so that you just can pass from fossil fuels to renewables in a single day. Thus, there is very well-known replace in funding the transition half for corporations from fossil fuels to renewables,” said Juster.

Agarwal added that the fund manager is keenly staring at the energy transition home, where it wants to scrutinize how it would expedite and run up the transition of the Indian carbon-based completely mostly economy into a inexperienced one.

“CDPQ is committed to working with—and providing our capital to—easiest-in-class energy companies on a transition in direction of a greener economy. As portion of our new local weather technique, now we safe an envelope of capital reserved for funding energy transition companies and would possibly perhaps perhaps perhaps invent investments into companies that are presently carbon-heavy nonetheless safe a transparent direction in direction of becoming obtain-zero,” he said. “Not many patrons can raise that stance at the present time, and we strongly think it’d be a supply of resplendent funding opportunities,” he added.

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