ANZ Explores Infrastructure Investment Opportunities in India

ANZ Group Holdings Ltd. is in discussions with Australian pension funds regarding potential investments in India’s infrastructure assets and debt market, according to a senior bank official.

Mark Whelan, group executive of institutional at ANZ, revealed in an interview in Mumbai that the bank is engaged in talks with several Australian pension funds to explore opportunities in India. Whelan emphasised ANZ’s aim to establish comprehensive business relationships with these funds, assisting them in identifying suitable assets and connecting them to potential investment opportunities.

India’s infrastructure sector faces a significant funding gap, while Australian funds seek global investment avenues due to limited domestic options. With India’s ruling party prioritising infrastructure in its campaign manifesto, opportunities for investment are expected to expand, especially as infrastructure spending is projected to double to nearly 143 trillion rupees ($1.7 trillion) over the next seven fiscal years through 2030, according to Crisil Ratings.

Australia’s pensions industry, valued at A$3.7 trillion ($2.4 trillion) and projected to triple to A$13.6 trillion by 2048, stands to benefit from these opportunities, particularly as Indian government bonds become an attractive investment avenue. Indian sovereign securities, offering yields of 7%-7.50%, are increasingly appealing to Australian pension funds, especially with their inclusion in JPMorgan Chase & Co.’s flagship emerging markets bond index from June.

Whelan highlighted the attractiveness of Indian government bonds for Australian pension funds, noting that they provide an opportunity for these funds to deploy their capital effectively.

ANZ has significantly increased its capital base in India to A$600 million over the past two years, reflecting its commitment to the market. ANZ Group Chief Executive Officer Shayne Elliott has emphasised the importance of growing the firm’s presence in India amidst shifting global trade patterns, as part of a broader strategy that includes reducing positions in banks in Malaysia, China, and Indonesia.