L&T, Canada Pension Plan completes investment agreement

Larsen & Toubro (L&T) today said it has completed the definitive investment agreement with Canada Pension Plan Investment Board (CPPIB) for investment of Rs 2,000 crore in the engineering firm.
The agreement, signed in June this year, was made between L&T and a wholly-owned subsidiary of CPPIB, for investment into former's subsidiary L&T Infrastructure Development Projects Limited (L&T IDPL), a release issued here said.
CPPIB, through its subsidiary CPP Investment Board Singaporean Holdings 1 (CPPIBSH) has made an initial investment of Rs 1,000 crore in L&T IDPL on December 16 by way of subscription to compulsorily convertible preference shares.
This will be followed by a second tranche of Rs 1,000 crore, or a higher amount as may be agreed between the two, 12 months after the initial investment, it said.

This is the first direct private investment by a Canadian pension fund into an Indian infrastructure development company.
L&T IDPL's business includes development of roads and bridges, ports, metro rail, power transmission lines, wind energy and emerging sectors such as water and railways. It handles infrastructure assets with an estimated project cost of USD 7.5 billion comprising 23 projects across sectors.