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CPP invests Rs 1,005 cr more in Indinfravit for additional 16% stake



CPP invests Rs 1,005 cr more in Indinfravit for additional 16% stake

MUMBAI: The Canada Pension Plan Investment Board or CPP Investments on Thursday acquired an additional 15.9 per cent of the total units in Indinfravit Trust (Indinfravit) through two separate transactions, for 173 million Canadian dollars (Rs 1,005 crore), taking its ownership in the trust to 43.8 per cent from 27.9 per cent now.

Indinfravit is an infrastructure investment trust (InvIT) sponsored by L&T Infrastructure Development Projects since 2018 to acquire and maintain brownfield road concessions.

With this deal, CPP Investments has acquired 7 per cent of the units from

, and will acquire an additional 8.9 per cent from L&T Infrastructure Development Projects, which on completion, will increase CPP’s stake in the country’s first Indinfravit from 27.9 per cent to 43.8 percent.

The combined investment is 173 million Canadian dollars or Rs 1,005 crore, the CPP said in a statement.

The unit acquisition is expected to be completed by next week, subject to relevant regulatory requirements.

Indinfravit holds a portfolio of 13 operational road concessions across five high-growth and economically diverse states of Karnataka, Maharashtra, Rajasthan, Tamil Nadu and Telangana. The roads, located along key national highway corridors, primarily supply to inter-city and long-distance freight traffic, servicing a mixed group of road users and goods traffic and have been operational, on average, for around seven years.

“We have been invested in Indinfravit, the first private InvIT of its kind in the country, since its inception in 2018, said Scott Lawrence, managing director and head of infrastructure at CPP Investments.

This investment furthers our commitment to Indinfravit and also reflects our ongoing commitment to investment in this country, as well as our ability to support Indinfravit’s future growth opportunities and enhances our ability to deliver long-term risk-adjusted returns to our contributors and beneficiaries, he added.

Sadbhav Infrastructure is a developer and operator of roads and other infrastructure projects.

L&T IDPL will continue to act as a sponsor and its subsidiary will remain as the investment manager for Indinfravit, post this investment and both the companies will continue as project managers for the portfolio.

The CPP Investments is a professional investment management organization that manages funds over 20 million contributors and beneficiaries of the Canada Pension Plan.

Headquartered in Toronto, with offices in Hong Kong, London, Luxembourg, Mumbai, New York City, San Francisco, São Paulo and Sydney, CPP Investments is governed and managed independently of the Canada Pension Plan and had USD 475.7 billion in AUM as of December 2020.

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