The Canada Pension Plan Investment Board (CPPIB) has invested in India’s infrastructure sector.
Its wholly owned subsidiary, CPP Investment Board Singaporean Holdings I (CPPIBSH), has entered into a definitive agreement with Larsen & Toubro (L&T) to initially invest US$166 million ($178.1 million) in L&T Infrastructure Development Projects Ltd.
The CPPIBSH is also committed to a second investment of about US$166 million to be invested 12 months following the initial investment.
L&T is the largest engineering and construction company in India. It owns the largest toll-road concession portfolio in India, which includes 19 toll roads spanning more than 2,200 kilometres, as well as a power transmission line project and a metro project in Hyderabad.
“This transaction represents CPPIB’s first investment in India’s infrastructure sector with a highly reputable partner and fits well with our strategy for India as a key long-term growth market,” says André Bourbonnais, CPPIB’s senior vice-president, private investments. “We look forward to partnering with L&T and L&T IDPL’s experienced management teams as we build our infrastructure platform in India over the long term.”
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