TORONTO The Canada Pension Plan Investment Board said on Monday it plans to invest about $332 million in infrastructure projects in India through an investment with engineering and construction firm Larsen & Toubro.
The Toronto-based pension fund manager said it has entered into a definitive agreement with Larsen & Toubro to initially invest roughly $166 million in L&T's unit, L&T Infrastructure Development Projects Ltd. It will invest a further $166 million within 12 months of the initial investment.
The investment will be converted into equity in the L&T unit by 2018 and give CPPIB at that point in time a minority stake in the L&T subsidiary, which owns the largest toll-road portfolio in India and connects some of the most important cities, ports and economic corridors in the country.
L&T IDPL also owns a power transmission line project and a metro project in south India.
"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," said CPPIB's head of Private Investments André Bourbonnais, in a statement.
(Reporting by Euan Rocha; Editing by Meredith Mazzilli)
Trending On Reuters
IAF plane missing
The massive hunt for an Indian Air Force plane that went missing in stormy monsoon weather over the Bay of Bengal on Friday with 29 people on board dragged into a third day on Sunday. Full Article