Canada Pension Plan Investment Board (CPPIB) has made its debut infrastructure investment in Indonesia with the acquisition of a 45% stake in the Cikopo-Palimanan (Cipali) toll road.
CPPIB is partnering PT Baskhara Utama Sedaya (BUS) to jointly acquire the 55% stake, in the concession holder and operator PT Lintas Marga Sedaya (LMS), currently held by PLUS Expressways International.
BUS is an existing owner of 45% of LMS and will increase its stake to 55%. CPPIB will acquire the remaining 45% stake in LMS for an undisclosed sum.
The 117km Cipali toll road is one of the longest operational toll roads in Indonesia and a critical link in the transportation network of the island of Java, as part of the Trans Java Toll Road network.
Scott Lawrence, managing director, head of infrastructure, CPPIB, said: “Cipali toll road provides CPPIB access to a vital infrastructure development supported by rising motorization rates in one of the most densely populated and economically productive regions in Indonesia.”
Suyi Kim, senior managing director and head of Asia Pacific, CPPIB, said: “As CPPIB’s first infrastructure investment in Indonesia, this deepens the fund’s commitment to the Asia-Pacific region as well as our focus on investments in new markets with attractive return and risk characteristics.”
As at the first half of the year, CPPIB – which manages the C$400.6bn (€272.8bn) funds of the Canada Pension Plan – had C$33.1bn invested in infrastructure assets globally.