Kommunal Landspensjonskasse, Oslo, is divesting from Myanmar-linked Adani Ports and Special Economic Zone Ltd. under its new due diligence-based criteria.
The pension fund, which had 813.5 billion Norwegian kroner ($95.1 billion) in assets as of March 31, had a 9 million kroner holding in Adani Ports.
Adani Ports, which is India's largest port operator, is under scrutiny from investors over a project to build a container in Yangon, on land leased from a Myanmar-owned conglomerate, the fund said in a notice on its website. KLP is concerned that there is an "imminent danger" that armed forces could use the port to bring weapons and equipment into Myanmar, or use it as a naval base.
"Adani's operations in Myanmar and its business partnership with that country's armed forces constitutes an unacceptable risk of contributing to the violation of KLP's guidelines for responsible investment," Kiran Aziz, senior analyst in KLP, said in the release.
Assets have been reinvested in other companies, a spokeswoman said.