Québec’s Caisse de dépôt et placement du Québec (CDPQ) is investing in Mexican infrastructure through a joint venture with local pension funds.
The North American institutional investor said it was taking a 51% stake in a co-investment vehicle with CKD Infraestructura México.
CKD, a consortium of Mexican institutional investors, includes Mexico’s three largest Administradoras de Fondos de Pensiones (Afores), which manage Mexico’s private pension fund system.
Pension fund managers XXI Banorte, SURA, Banamex, Pensionissste and infrastructure fund Fonadin are backing the vehicle, which will invest MXN35.1bn ($2.1bn) in Mexican projects over the next five years.
CDPQ said it would commit MXN17.9bn to the vehicle.
Investment in energy generation – including renewable energy – transmission and distribution, transportation and public transport will form part of the vehicle’s strategy.
As part of the deal, CKD IM is taking 49% of CDPQ’s equity investment in the ICA OVT platform, which holds four toll road concessions.
The deal was announced earlier this year.
CDPQ president and chief executive Michael Sabia said: “When we look around the world, especially in the infrastructure sector, Mexico stands out as an exceptional country to invest in.”
Mexico’s government recently announced a four-year, MXN7.7trn plan for infrastructure investments, targeting energy and transportation projects.
Eduardo Ramos, general manager at CKD IM, said recent reforms in the energy and infrastructure sectors had opened the possibility of “win-win partnerships that will benefit the whole Mexican economy”.
Jose Maria de la Torre, chief executive of Pensionissste, said the partnership would serve as the “stepping stone for a number of related transactions that should catapult infrastructure investment in the country throughout the coming decade to a new plateau”.