CPP Investments pays Rs 1,005 cr for addl 15.9% stake in IndInfravit Trust

Units were bought in two separate deals--7% from Sadbhav Infra and 8.9% L&T IDPL in a deal that will happen later

Canada Pension Plan Investment Board (CPP Investments), the largest Canadian pension fund manager, today said it bought an additional 15.9 per cent of the total units in IndInfravit Trust for Rs 1,005 crore. The units were bought in two separate deals.

CPP Investments has acquired seven per cent of the units from Sadbhav Infrastructure Project and will acquire an additional 8.9 per cent from L&T IDPL, which, upon completion, will increase CPP Investments’ stake in IndInfravit from 27.9 per cent to 43.8 per cent .

IndInfravit is an infrastructure investment trust (InvIT) sponsored by L&T Infrastructure Development Projects Limited . Launched in 2018, IndInfravit acquires and maintains stable brownfield road concessions in the country.

IndInfravit holds a portfolio of 13 operational road concessions across five states including Karnataka, Maharashtra, Rajasthan, Tamil Nadu and Telangana.

Scott Lawrence, managing director and head of Infrastructure, CPP Investments said: “Sound infrastructure is vital to supporting growth in the Indian economy. Furthering our commitment to IndInfravit reflects our ongoing commitment to investment in India, as well as our ability to support IndInfravit’s future growth opportunities and enhances our ability to deliver solid long-term risk-adjusted returns to CPP contributors and beneficiaries.”

SIPL is a developer and operator of roads and other infrastructure projects. L&T IDPL is one of the largest Infrastructure development companies in the country and operates a private toll road concession portfolio and an electricity transmission project.

L&T IDPL will continue to act as a sponsor and its subsidiary will remain as the investment manager for IndInfravit. L&T IDPL and SIPL will continue as project managers for the portfolio.