Mumbai: Canada pension plan investment board, which manages assets worth 234.4 billion Canadian dollars, has through a subsidiary invested 1,000 crore in L&T Infrastructure Development Projects Ltd, a unit of Larsen and Toubro Ltd, India’s largest engineering and construction company.

The investment is made by way of subscribing compulsory convertible preference shares, L&T said in a statement. In June, L&T and Canada Pension Plan had signed a definitive investment agreement.

This is the first direct private investment by a Canadian pension fund into an Indian infrastructure development company.

A second tranche of 1,000 crore, or an amount as may be agreed between the Indian firm and Canada Pension Plan’s subsidiary, will be invested after 12 months, subject to any required regulatory approvals at such time, L&T said.

L&T’s unit has interests in development of roads, bridges, ports, metro rail, power transmission lines, wind energy and emerging sectors such as water and railways and handles a portfolio of assets with an estimated project cost of $6 billion comprising 20 projects across key sectors.

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