CPPIB, Allianz to acquire 55% units in L&T’s IndInfravit Trust

Canada Pension Plan Investment Board (CPPIB) and Allianz Capital Partners (ACP) have agreed to together acquire 55% of units in IndInfravit Trust (IndInfravit), sponsored by L&T Infrastructure Development Projects Limited (L&T IDPL), a joint statement said on Wednesday. The two will be acting as anchor investors in the first private infrastructure investment trust in India, which will initially acquire five operational toll roads and plans to grow in the future through additional investments in road infrastructure in India.

The InvIT will start trading on May 10 on NSE and BSE. FE had reported on March 21 that L&T IDPL will infuse Rs 1,500 crore as equity, another Rs 1,500 crore will be raised via a private placement. The total enterprise value of the trust is pegged at Rs 6,000 crore after the fundraising. FE could not confirm the final amount raised immediately.

CPPIB will invest approximately C$200 million for 30% of IndInfravit units while ACP has acquired 25% of the units and L&T IDPL will hold 15% of the units. The remainder of the units have been subscribed by other local and international institutional investors, the statement said. L&T IDPL will act as a sponsor and its subsidiary will act as the investment manager for the trust.

CPPIB had invested Rs 1,000 crore in L&T IDPL in December 2014 by way of subscription to compulsorily convertible preference shares and made a similar investment of Rs 1,000 crore in second tranche in December 2015, taking the total investment to Rs 2,000 crore. CPPIB has been investing in India since 2012. The five toll roads initially constructed by L&T IDPL are spread across four Indian states of Karnataka, Telangana, Tamil Nadu and Rajasthan.

Larsen & Toubro Limited