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 & 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)