Quebec Pension Teams With Mexico Investors on $2 Billion Infrastructure Partnership

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Caisse de dépot et placement du Québec has teamed with a group of Mexican institutional investors to invest $2.1 billion in Mexican infrastructure projects over the next 5 years, the pension fund announced on this week.

Caisse is familiar with Mexico; last year, the fund announced plans to invest up to $500 million in the country’s residential and urban housing projects.

More from the Wall Street Journal:

The arrangement comes as the Quebec-based pension fund […] aims to double its current C$11 billion infrastructure portfolio by 2018.

Caisse said it plans to commit C$1.43 billion to the partnership, which it calls the first of its kind in North America, giving it a 51% stake in the new infrastructure-focused investment vehicle. The remaining 49% will be held by CKD Infraestructura Mexico, a newly created trust comprising some of Mexico’s largest pension funds, including XXI Banorte, SURA, Banamex, Pensionissste and infrastructure fund Fonadin.

“When we look around the world, especially in the infrastructure sector, Mexico stands out as an exceptional country to invest in,” Caisse Chief Executive Michael Sabia said in a statement.

Last year, Mexico’s government boosted its infrastructure investment plan, projecting spending on projects to reach around $590 billion by 2018.

Investments in bridges, toll roads and other infrastructure are a priority for Canada’s biggest pension funds because of the steady revenue these assets generate to help them meet long-term pension liabilities.

Caisse de depot et placement du Quebec manages around $180 billion (USD) of assets.

 

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