Canada Pension Plan Investment Board, Toronto, on Monday announced it would commit US$166 million to engineering firm Larsen & Toubro's Mumbai-based infrastructure subsidiary, L&T Infrastructure Development Projects.
It's the first investment in Indian infrastructure by the board, which oversees investment of the C$219.1 billion (US$204.1 billion) Canada Pension Plan, Ottawa.
The investment by CPP Investment Board Singaporean Holdings I, a subsidiary of CPPIB, will be followed by a second tranche of US$166 million to be invested 12 months after the initial investment.
The commitments require Canadian and Indian regulatory approval.
The L&T subsidiary owns 19 Indian toll roads and a power transmission line project in the country, among other investments. It also is building a public transportation project in Hyderabad, said Linda Sims, CPPIB spokeswoman.
The transaction is subject to customary closing conditions and approvals from relevant governmental authorities and regulators.
CPPIB had 6.1% of its assets invested in infrastructure as of March 31, according to the board website.