Canada Pension Plan Investment Board and Allianz Capital Partners, on behalf of Allianz insurance companies, are acting as anchor investors in the first private infrastructure investment trust in India.
IndInfravit Trust, sponsored by L&T Infrastructure Development Projects Limited, will initially acquire five operational toll roads and plans to grow in the future through additional investments in road infrastructure in India.
CPPIB will invest approximately C$200 million ($155.7 million) for 30 percent of IndInfravit units, ACP has acquired 25 percent of the units, and L&T IDPL will hold 15 percent of the units. The remainder of the units have been subscribed by other local and international institutional investors.
CPPIB and ACP will take board positions on the Investment Manager and are looking forward to further invest into Indian road infrastructure and grow the platform.
The five toll roads initially constructed by L&T IDPL are spread across four Indian states of Karnataka, Telangana, Tamil Nadu and Rajasthan, which together have a total population of 238 million people and contribute around 24 percent to India’s GDP. These toll roads have been operating for approximately five years now and are used by diverse groups of road users and goods traffic.
“Infrastructure is a key driver of India’s economy and it is well served by a reliable fiscal and legal policy framework that attracts long-term investors such as ourselves,” said Christian Fingerle, chief investment officer at ACP. “As such, it fits in with our investment strategy of specializing in core infrastructure assets in attractive markets.”
L&T IDPL is a leading developer of infrastructure projects in India with a main focus on the road sector and electricity transmission sectors. ACP and CPPIB are long-term investors with a strong track record in investments that provide essential services to the public at large. Most recently, ACP and CPPIB were joint investors in Gas Natural’s gas distribution business in Spain. CPPIB has been investing in India since 2012.
