Canada Pension Plan Investment Board (CPPIB) is investing INR20bn (€245m) in India’s infrastructure sector.
CPPIB subsidiary, CPP Investment Board Singaporean Holdings I, will invest an initial INR10bn in Larsen & Toubro subsidiary, L&T Infrastructure Development Projects Limited (L&T IDPL).
CPPIB will make a second commitment for the same amount next year.
The investment, through preference shares, will give CPPIB a minority stake in the equity capital of L&T IDPL once the preference shares are converted to equity shares in 2018.
L&T IDPL owns the largest toll-road concession portfolio in India, including 19 toll-roads over 2,200 km. L&T IDPL also owns a power transmission line project, and a metro project in Hyderabad.
Andre Bourbonnais, CPPIB senior vice-president for private investments, said the investment ”fits well” with its strategy for India as a ”key, long-term growth market”.