🎈 Up Big Today: Find today's biggest gainers (some over 50%!) with our free screenerTry Stock Screener

UPDATE 1-Canadian pension fund CPPIB targets new investment avenues in India

Published 2017-04-26, 09:19 a/m
© Reuters.  UPDATE 1-Canadian pension fund CPPIB targets new investment avenues in India
VOD
-
VODA
-
KTKM
-
FFH
-
INUS
-

(Adds further detail from interview, background)

By Devidutta Tripathy and Euan Rocha

MUMBAI, April 26 (Reuters) - Canada Pension Plan Investment Board (CPPIB), the country's largest pension fund manager, is exploring opportunities in India's financial services, telecoms and logistics sectors to expand its bets in the South Asian economy, CPPIB's Asia Pacific head Suyi Kim said on Wednesday.

CPPIB, which has poured more than C$4 billion ($3 billion) into real estate and other investments in the country, will expand its eight-member team in India in a measured manner as it looks boost the share of investment in emerging markets in its overall portfolio, Kim told Reuters.

The roughly C$300 billion fund has about 10 percent of its portfolio invested in emerging markets and aims to boost that to about 15 percent over the next three to five years, she said.

"All our teams -- infrastructure, real estate, private equity and natural resources -- are looking for opportunities," Kim said, adding that India's fast-growing financial services sector is among the bright spots.

Last month CPPIB raised its stake in Kotak Mahindra Bank KTKM.NS to about 6.3 percent by buying additional shares in the fourth-biggest Indian private sector lender by assets. said that CPPIB is interested in traditional banks and would look at any further opportunity to increase its stake in Kotak, though current Indian regulations would cap its holdings at 10 percent.

"Globally we've invested in a number of insurance companies and we will, over time, hopefully look at that in the Indian market," she said, adding that CPPIB is also attracted to other parts of India's non-banking financial arena.

Kim declined to comment on whether CPPIB was in the running for a 25 percent stake that Canada's Fairfax Financial Holdings FFH.TO is looking to sell in India's largest private general insurer ICICI Lombard. said that CPPIB could also consider private equity lending in India through a joint venture. In 2015 CPPIB bought GE Capital's private equity lending portfolio for $12 billion, vastly expanding its lending business. (http://reut.rs/2pl6y0y)

TELECOMS AND RENEWABLES

CPPIB and private equity giant KKR & Co KKR.N agreed last month to buy a 10.3 percent interest in mobile towers operator Bharti Infratel BHRI.NS for 61.9 billion rupees. data consumption is growing. As a long-term investor we see this as an attractive opportunity," Kim said.

Asked if CPPIB would consider acquiring a stake in the Indus Towers joint venture in which Vodafone VOD.L and Idea Cellular IDEA.NS are planning to sell their stakes, Kim said: "We're interested in not only that, but other telecoms opportunities."

Vodafone and Idea plan to divest stakes in the business as part of a deal to combine their Indian mobile operations, with media reports having cited CPPIB as a potential suitor. would be another focus area for the fund.

"India and China are making a huge push in renewables and we think that there could be opportunities for us here," Kim said. (Editing by Subhranshu Sahu and David Goodman)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.