Ontario Teachers’ Pension Plan Board and Canada Pension Plan Investment Board (CPP Investments) are increasing their stakes in a Mexican toll road operator to 24.8% each.

Ontario Teachers’ is buying an additional 8.4% interest in Impulsora del Desarrollo y el Empleo en América Latina (IDEAL), while CPP Investments will increase its investment holding by an additional 1.1%.

The Canadians are buying IDEAL’s shares at MXN$45.00 each to increase their stakes.

Back in November 2019, CPP Investments and Ontario Teachers’ acquired 23.7% and 16.3%, respectively, of IDEAL following previous joint ventures between the trio to own toll roads Arco Norte and Pacifico Sur.

IDEAL owns, finances and operates a portfolio of brownfield and greenfield toll road concessions, water treatment plants, multimodal transit terminals and Mexico’s largest electronic toll collection systems operator. IDEAL’s primary business is in the toll road sector where it operates a portfolio of roads strategically distributed to interconnect key urban centres, ports and production hubs across Mexico.

Stacey Purcell, managing director, Latin America of Ontario Teachers’ infrastructure and natural resources group, said: “We are excited to further deepen our longstanding investment relationship with IDEAL alongside CPP Investments and significantly increase our exposure to high-quality core infrastructure assets in Mexico.

“Over the past few years, we have seen firsthand that IDEAL is the premier infrastructure platform in Mexico and believe it is well-placed to continue delivering strong results and growth in the years to come.”

Scott Lawrence, managing director, head of infrastructure at CPP Investments, said: “Our ongoing investment in IDEAL continues to provide CPP Investments with access to a diversified portfolio of real assets with stable cash flows, while also providing the opportunity for future growth through development opportunities in Mexico’s infrastructure sector.

“We look forward to the ongoing growth of this platform alongside our valued partners.”

To read the digital edition of the latest IPE Real Assets magazine click here. 

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