NEW DELHI: Edelweiss and Canada’s Caisse de dépôt et placement du Québec (CDPQ), will invest Rs 5,000 crore over next four years and acquire a 20 per cent stake in Edelweiss Asset Reconstruction Company.
“The agreement...will provide Edelweiss Group with capital to invest in stressed assets and private debt opportunities in India. The partnership creates one of the largest and most diversified credit investing platforms in India,” Edelweiss said in a BSE filing.
The capital will be funnelled through Edelweiss ARC (EARC) and through different Edelweiss funds, and will result in the purchase of nonperforming loans from Indian banks and investments in private debt of growing Indian companies, Edelweiss added.
North America’s largest pension fund managers, CDPQ opened an office at Delhi in March 2016. “By becoming a partner of Edelweiss, CDPQ is looking to support its growth for many years to come and, ultimately, participate in the emergence of new innovative and successful businesses in India,” said Michael Sabia, Chief Executive Officer at CDPQ.
CDPQ will sit on EARC’s board of directors and on the Edelweiss Group investment committee overseeing private debt and stressed assets investments.