Larsen & Toubro (L&T) and Canada Pension Plan Investment Board (CPPIB) have completed the definitive investment agreement entered into in June 2014. The agreement was made between L&T and a wholly-owned subsidiary of CPPIB, for investment into L&T’s subsidiary - L&T Infrastructure Development Projects (L&T IDPL).
CPPIB, through a subsidiary, has made an initial investment of Rs 1,000 crore in L&T IDPL on December 16, 2014 by way of subscription to compulsorily convertible preference shares. A second tranche of Rs 1,000 crore, or such higher amount as may be agreed between L&T IDPL and CPPIB’s subsidiary, will be invested after twelve months from the date of the initial investment, subject to any required regulatory approvals at such time.
This is the first direct private investment by a Canadian pension fund into an Indian infrastructure development company.