Canada’s largest pension fund, Canada Pension Plan Investment Board (CPP Investments) on Thursday said it is acquiring an additional 15.9% of the total units in IndInfravit Trust, an infrastructure trust (InvIT), for ₹1,005 crore ($136 million), the pension fund said in a statement.
IndInfravit, sponsored by L&T Infrastructure Development Projects Limited (L&T IDPL), launched in 2018, acquires and maintains stable brownfield road concessions in India.
The stake will be acquired through two separate transactions.
“CPP Investments has acquired 7% of the units from Sadbhav Infrastructure Project Limited (SIPL) and will acquire an additional 8.9% from L&T IDPL, which, upon completion, will increase CPP Investments’ stake in IndInfravit from 27.9% to 43.8%. The combined investment amount of the two transactions is C$173 million (INR 1,005 crore),” the statement said.
The acquisition of stake from L&T IDPL is expected to be completed before mid-May 2021, subject to relevant regulatory requirements, it added.
IndInfravit currently holds a portfolio of 13 operational road concessions across Karnataka, Maharashtra, Rajasthan, Tamil Nadu and Telangana. The roads have been operational, on average, for approximately seven years.
“We have been invested in IndInfravit, the first private InvIT of its kind in India, since its inception in 2018,” said Scott Lawrence, Managing Director and Head of Infrastructure, CPP Investments. “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.”
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, the statement said.