CDPQ and leading Mexican institutional investors create co-investment platform to invest in infrastructure opportunities in Mexico
Caisse de dépôt et placement du Québec (CDPQ), a Canadian long-term institutional investor, and a consortium of Mexican institutional investors (including Mexico’s three largest Afores) joined under CKD Infraestructura México, S.A. de C.V. (CKD IM), a newly-created trust, announced today the creation of a co-investment vehicle for infrastructure projects in Mexico. This innovative partnership between leading Mexican financial institutions and a large international pension fund manager constitutes a first in North America. The new co-investment platform will combine world-class infrastructure expertise with established local networks. The platform will invest up to MXN 35.1 billion (CAD 2.8 billion) over the next five years.
The agreement provides CDPQ and CKD IM with an ideal platform to participate in the expansion and the modernization of Mexico’s infrastructure. Fueled by ambitious structural reforms, favourable demographics and robust demand from the United States, the Mexican economy is poised for significant growth in years to come. Infrastructure opportunities show particular promise in the wake of the government of Mexico’s four-year, MXN 7.7 trillion plan for infrastructure investments, targeting energy and transportation projects, among others.
Over the next five years, the co-investment platform expects to pursue a wide range of investment opportunities in several sectors of the infrastructure market, such as energy generation (including renewable energy), transmission and distribution, transportation and public transit, among others.
During this period, CDPQ plans to commit MXN 17.876 billion (CAD 1.43 billion) and CKD IM MXN 17.215 billion (CAD 1.38 billion). CDPQ will hold a 51% interest in the co-investment vehicle. CKD IM, whose shares are listed on the Mexican Stock Exchange, will hold the remaining 49%. Current shareholders of CKD IM are Mexican pension fund managers (Afores) XXI Banorte, SURA, Banamex, Pensionissste and infrastructure fund Fonadin. Together, the Afores holding shares in CKD IM manage 62% of total Mexican pension fund assets.
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