Canada Pension Plan Investment Board (CPPIB) has completed its initial Rs 1,000-crore investment in Larsen & Toubro Infrastructure Development Projects (L&T IDPL). The two companies had signed an agreement in June and the investment was concluded on Tuesday.
According to the agreement, CPPIB will invest the second tranche of (a minimum of) Rs 1,000 crore after 12 months. This is the first direct investment by the Canadian pension plan in an Indian infrastructure company.
CPPIB has invested in preference shares of L&T IDPL, compulsorily convertible into equity shares by 2018, at a valuation to be determined according to a mutually-agreed process. After conversion, the Canadian firm would hold a minority stake in the equity capital of L&T IDPL, the companies had earlier said.
L&T IDPL handles a portfolio of infrastructure assets comprising road projects, ports and the Hyderabad Metro Rail project. The company is looking to deleverage its investments.
