Mumbai, December 15, 2015: As part of the definitive agreement entered into by Larsen & Toubro Limited (L&T) and Canada Pension Plan Investment Board (CPPIB) in June 2014, whereby CPPIB through its Singapore-based wholly owned subsidiary, had committed to make an investment of Rs 2000 crore into L&T’s subsidiary – L&T Infrastructure Development Projects Limited (L&T IDPL) in two tranches, CPPIB today completed its second tranche investment of Rs 1,000 crore.
The first tranche investment of Rs 1000 crore was made on December 16, 2014 by way of subscription to compulsorily convertible preference shares of L&T IDPL and the second tranche of Rs 1,000 crore was to be invested in L&T IDPL by CPPIB’s subsidiary, after twelve months from the date of the initial investment.
The second tranche investment of Rs 1000 crore has now been made by CPPIB’s subsidiary on December 15, 2015 by subscribing to compulsorily convertible preference shares of L&T IDPL.
BACKGROUND:
L&T Infrastructure Development Projects Limited (L&T IDPL), is a subsidiary of Larsen & Toubro (L&T) and a pioneer of the Public-Private-Partnership (PPP) model of development in India, which involves the development of infrastructure projects by private sector players in partnership with the Central and/or State governments. L&T IDPL has acquired concessions through a competitive bidding process for the development of Roads, Bridges, Hyderabad Metro Rail and the Kudgi Power Transmission Line projects.
It is one of India’s largest infrastructure developers with a proven track record across sectors and is also one of India’s largest road developers as measured by lane kilometres under concession agreements signed with the Central and State Government authorities.
Larsen & Toubro
Larsen & Toubro is an Indian multinational engaged in technology, engineering, construction, manufacturing and financial services with over USD 15 billion in revenue. It operates in over 30 countries worldwide. A strong, customer–focused approach and the constant quest for top-class quality have enabled L&T to attain and sustain leadership in its major lines of business for over seven decades.
About CPPIB
Canada Pension Plan Investment Board (CPPIB) is a professional investment management organization that invests the funds not needed by the Canada Pension Plan (CPP) to pay current benefits on behalf of 18 million contributors and beneficiaries. In order to build a diversified portfolio of CPP assets, CPPIB invests in public equities, private equities, real estate, infrastructure and fixed income instruments. Headquartered in Toronto, with offices in Hong Kong, London, Luxembourg, Mumbai, New York City and São Paulo, CPPIB is governed and managed independently of the Canada Pension Plan and at arm’s length from governments. At September 30, 2015, the CPP Fund totalled C$ 272.9 billion.
For more information please visit :
CPPIB: www.cppib.com
L&T: http://www.larsentoubro.com/
L&T IDPL: http://www.lntidpl.com/