NEW DELHI Kotak Mahindra Group said on Monday it has signed an agreement with Canada Pension Plan Investment Board (CPPIB) to invest up to $525 million in stressed assets in the country's banking and corporate sectors.
CPPIB and the Indian financial services conglomerate, along with its asset reconstruction arm, Phoenix ARC, plan to invest in asset sales by banks with the aim to restructure, recover and turnaround companies in distress.
"This investment is an important step in CPPIB's strategy to build a diversified credit business and will add to our direct credit investment capabilities in India," stated Adam Vigna, managing director, principal credit investments, CPPIB, in a statement.
Canada's pension fund will have the ability to invest up to $450 million in the partnership, Kotak said in a statement.
(Reporting by Aditi Shah; Editing by Sherry Jacob-Phillips)
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