Canada Pension Plan Investment Board (CPPIB) and Ontario Teachers’ Pension Plan are together acquiring 40% of the listed owner of 18 infrastructure concessions in Mexico.
CPPIB and Ontario Teachers’ will acquire 23.7% and 16.3%, respectively, of shares in Impulsora del Desarrollo y el Empleo en América Latina (IDEAL), which owns 13 toll roads.
As part of the arrangement, a Fideicomiso de Inversión en Energía e Infraestructura (FIBRA-E), a type of Mexican investment trust designed to hold energy and infrastructure projects, will be established and managed by a subsidiary of IDEAL.
The FIBRA-E will purchase partial stakes in four of IDEAL’s toll roads – Arco Norte, Chamapa-La Venta, Toluca Bypass and Tijuana-Tecate – and a secondary offering led by CPPIB and Ontario Teachers’ will occur, reducing their ownership to small minority positions while also introducing other investors.
“This investment in IDEAL provides CPPIB with the valued opportunity to access a diversified portfolio of assets with stable cash flows, while also providing the opportunity for future growth through development opportunities in Mexico’s infrastructure sector,” said Scott Lawrence, managing director and head of infrastructure at CPPIB.
“Broadening our partnership with Ontario Teachers’ and IDEAL further strengthens our commitment to long-term ownership.”
Dale Burgess, senior managing director of infrastructure and natural resources at Ontario Teachers’, said: “Following our investments in Arco Norte and Pacifico Sur, this investment in IDEAL represents an important addition to our infrastructure portfolio.
“IDEAL is a leading Mexican infrastructure platform and provides Ontario Teachers’ new capabilities to further invest in projects in the region.”