La Caisse’s REM project gets $1.3bn loan from Canada Infrastructure Bank

The financing of a $6.3bn Montréal rail network project, led by Caisse de Dépôt et Placement du Québec (CDPQ), has completed with a $1.28bn investment by Canada Infrastructure Bank.

Canada Infrastructure Bank has agreed with CDPQ Infra to provide the 15-year senior secured loan to help fund the Réseau express métropolitain project (REM), a 67km rail network with 26 stations.

The $1.28bn investment, which completes the project’s $6.3bn financing, is subject to the execution of the final documentation.

CDPQ Infra holds around 70% equity stake in the REM project and the Government of Québec holds around a 30% stake.

Pierre Lavallée, the president and CEO of Canada Infrastructure Bank, said: “We are pleased to participate in the funding of this important public infrastructure project.

“Public transit is one of our priority areas. Our role is to invest alongside private sector and institutional investors, and other public-sector partners to facilitate the development of strategic projects like the REM.”

Macky Tall, the president and CEO of CDPQ Infra, said: “We are very pleased to welcome the Canada Infrastructure Bank as a partner in the REM project.

“With this $1.28bn investment, the REM’s financing is now fully completed. The construction of the project is progressing well and will intensify in the fall,”

Construction of the REM began in April 2018. The first trains are scheduled to run in the summer of 2021.

Related images

  • REM Project

Have your say

You must sign in to make a comment

IPE QUEST

Your first step in manager selection...

IPE Quest is a manager search facility that connects institutional investors and asset managers.

  • QN-2575

    Asset class: Core Real Estate Muli-Manager Separate Managed Account.
    Asset region: Global.
    Size: CHF 150m.
    Closing date: 2019-12-20.

  • QN-2578

    Asset class: Sovereign Local Currency Emerging Market Debt.
    Asset region: Local emerging markets.
    Size: EUR 950m.
    Closing date: 2019-12-19.

  • QN-2582

    Asset class: Emerging Market Corporate Debt Hard Currency Investment Grade.
    Asset region: Emerging Markets.
    Size: USD 40 – 60 m.
    Closing date: 2020-01-07.

Begin Your Search Now