TORONTO, June 23 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 &
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)