Canada Pension Plan anchors investment in India infrastructure investment trust

Canada Pension Plan Investment Board, Toronto, and Allianz Capital Partners teamed up to acquire 55% in IndInfravit Trust, the first private infrastructure investment trust in India, according to a joint news release from the C$337.1 billion ($262.6 billion) pension fund and Allianz Group.

CPPIB will invest C$200 million for 30% of the trust's units; Allianz has acquired 25%; L&T Infrastructure Development Projects Ltd., a developer of infrastructure projects in India, has acquired 15%; and the "remainder of the units have been subscribed by other local and international institutional investors," the news release said.

IndInfravit Trust will initially acquire five operational toll roads and intends to make additional investments in road infrastructure in India in the future.

"This investment allows CPPIB to deepen our relationships with Allianz Capital Partners and L&T IDPL and demonstrates our commitment to investing in India," said Scott Lawrence, CPPIB's managing director and global head of infrastructure, in the news release. "The rapidly growing Indian economy brings with it a need for sound infrastructure, and we are pleased to be able to support this growth while delivering solid long-term, risk adjusted returns for the CPP fund."

Allianz Capital Partners is the alternative money manager unit of Allianz Global Investors and has about €23 billion ($27.8 billion) in alternative assets under management. As of Dec. 31, CPPIB's infrastructure allocation was 8.1%.