GLOBAL – The Canada Pension Plan Investment Board has made its first investment in infrastructure in Peru.
The fund made a $200m (€150m) investment for a 10.4% equity stake in Transportadora de Gas del Peru (TgP) from Grana y Montero (GyM), the largest engineering and construction company in Peru.
Andre Bourbonnais, senior vice-president for private investments for the pension fund, said: “Our acquisition of a stake of TgP represents the cornerstone of a long-term partnership with Grana y Montero, as we continue to pursue infrastructure opportunities in select markets in Latin America.”
TgP is the largest transporter of natural gas and natural gas liquids in Peru.
CPPIB said it believed in the Latin America region on a long-term basis, and that it would be a leading source of growth in the decades ahead.
It said it was generally interested in infrastructure investments that provided relatively stable long-term returns, had low technology replacement risk and possessed minimal substitution risks.
These could include energy transmission and distribution infrastructure, water and sewage companies, and transportation assets such as toll roads, airports and ports.
CPPIB has an infrastructure portfolio valued at CAD11bn (€7.3bn) as of the end of September 2013.
It has opened two new regional investment offices this year in New York City and Sao Paulo, Brazil.
The Sao Paulo office will become operational in April.
Mark Wiseman, president and chief executive at CPPIB, said: “CPPIB already has significant investments in the region, with nearly CAD5bn invested in real estate, public and private equity and infrastructure investments.
“The office will support our efforts to gain access to the best investment opportunities in the region and will help us continue to forge important relationships with local partners.”