The Ontario Teachers’ Pension Plan, along with the Canada Pension Plan Investment Board (CPPIB), are making a $1.35 billion bet on Latin American infrastructure.
The two pension funds are partnering with an infrastructure development company to acquire a 49 percent stake in one of Mexico’s largest toll roads.
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CPPIB and Teachers are kicking in a combined $1.35 billion to the partnership to acquire a 49 per cent stake in a new company formed by the partners to house one of the largest toll road concessions in Mexico, the group said Thursday.
The toll road is CPPIB’s first infrastructure investment in Mexico, but there are others in South America including two in Chile, and a gas pipeline in Peru.
Hogg said the infrastructure team in CPPIB’s Brazil office, opened in Sao Paolo in 2014, played an integral role in the Mexican toll road transaction.
“Members of our Sao Paolo office were heavily involved in this deal and bringing it to a successful conclusion,” she said.
Arco Norte is one of the largest federal toll road concessions in Mexico, with more than 30 years remaining on the concession. The 233-kilometre toll road bypass surrounds Mexico City in the north, northeast, and northwest region, “providing a critical link with major trade corridors,” according to the news release.