The C$409.5 billion ($309.1 billion) Canada Pension Plan Investment Board and C$201.4 billion Ontario Teachers' Pension Plan, both of Toronto, have expanded a partnership with a Mexican firm to further invest in infrastructure projects in the country.
Under the agreement, CPPIB and OTTP will acquire minority stakes in infrastructure firm Impulsora del Desarrollo y el Empleo en America Latina, which already operates 18 infrastructure projects in Mexico comprised of 13 toll roads, three logistical terminals and two wastewater treatment plants, a joint news release Thursday from CPPIB and OTPP said.
The agreement follows deals in 2016 and 2018 between the pension plans and IDEAL, which partnered to invest in the Arco Norte and Pacifico Sur toll roads in Mexico.
In the newly announced deal, CPPIB will acquire a 23.7% interest in IDEAL, while Ontario Teachers' will acquire a 16.3% stake.
Additionally, an infrastructure investment trust, FIBRA-E, will be funded by shareholders of IDEAL, CPPIB and Ontario Teachers and purchase partial stakes in four of IDEAL's toll roads: Arco Norte, Chamapa - La Venta, Toluca Bypass and Tijuana – Tecate.
In a secondary offering led by CPPIB and Ontario Teachers', the pension plans' will reduce their ownership to small minority positions and the investment trust will be opened to other investors, the news release said.
Spokesmen at CPPIB and Ontario Teachers' could not immediately be reached for comment.