CPPIB, Allianz buy into Indian infrastructure trust set to list

Interise Trust

09/05/2018 12:22

MUMBAI, May 9 (Reuters) - Canada Pension Plan Investment
Board (CPPIB) and Allianz Capital Partner has agreed to take 55
percent of the units in an infrastructure investment trust
backed by a subsidiary of Larsen & Toubro Ltd  LART.NS .
    L&T Infrastructure Development Projects Ltd's (IDPL) is
scheduled to list on the market on Thursday. 
    CPPIB will invest $154.68 million for its 30 percent stake
in IDPL, it said in a joint statement with Allianz.
    Allianz Capital Partner (ACP), on behalf of Allianz
insurance companies, will buy 25 percent of the units in its
first direct investment in Asia, the statement said.
    The investment will be CPPIB's third into IDPL after it
spent 20 billion rupees ($297 million) in two tranches in 2014. 
    Infrastructure Investment Trusts (InvIt) and Real Estate
Investment Trusts (REIT) invest in rent-yielding assets and
distribute most of their income to shareholders as dividends.
    IDPL will start trading on May 10 after raising 32 billion
Indian rupees through a private placement. 
    ICICI Securities Ltd and Citigroup are the lead managers on
the private placement.  urn:newsml:reuters.com:*:nL3N1SE2KL 
    The trust will be the first to be listed on the Indian
market in a year after the IRB InvIt Fund  IRBN.NS  and
Sterlite's India Grid Trust  IGTR.NS  drew lukewarm responses in
April and May 2017. 
    L&T IDPL has a portfolio of assets comprising roads,
bridges, metro rail in the southern city of Hyderabad, ports and
power transmission lines. 
    ($1 = 67.3250 Indian rupees)

 (Reporting by Promit Mukherjee and Devidutta Tripathy)
 ((promit.mukherjee@thomsonreuters.com; +91-22-6180-7516;
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