- Iguá, majority owned by CPP Investments, recently named winner
of concession auction for water and sanitation services in
Brazilian state of Sergipe
- New concession rights significantly increases Iguá's customer
base and expands geographic footprint
- CPP Investments equity injection of up to R$2.2 billion (C$532
million) will fund Iguá's purchase, support capital
expenditures
SAO
PAULO, Sept. 10, 2024 /CNW/ - Canada Pension Plan
Investment Board (CPP Investments) today announced a new
follow-on commitment of up to R$2.2
billion (C$532 million)
to Brazilian water and sanitation company Iguá Saneamento. The
additional commitment will support what is expected to be a period
of transformational growth for Iguá Saneamento after it was awarded
a major concession contract in the Brazilian state of Sergipe.
Iguá was announced as the winning bidder for the Sergipe
concession on September
4th, following a competitive auction process.
Soon to be Iguá's second-largest concession, it will provide water
distribution and sewage collection and treatment services to 74
municipalities across the northeastern Brazilian state. With the
addition of the Sergipe concession rights, Iguá will be operational
in seven Brazilian states, providing potable water and sewage
treatment services to approximately 5 million customers and
growing.
"This is a transformational acquisition for Iguá, which
continues to serve as an excellent platform through which CPP
Investments can identify and gain access to the most attractive
investment opportunities in the Brazilian water and sanitation
market," said James Bryce, Global
Head of Infrastructure at CPP Investments. "This sector has
significant room for growth while also providing opportunities to
invest in long-term, stable assets at scale. We expect our
investment in Iguá will continue to deliver strong returns for the
CPP fund and we look forward to supporting the company's success
through this follow-on investment."
CPP Investments first invested in Iguá in 2021 as a platform for
further investments in Brazil's
water and sanitation sector and holds, prior to this additional
commitment, a total aggregate amount of 61.4% in the company.
About CPP Investments
Canada Pension Plan Investment Board (CPP Investments™) is a
professional investment management organization that manages the
Fund in the best interest of the more than 22 million contributors
and beneficiaries of the Canada Pension Plan. In order to build
diversified portfolios of assets, investments are made around the
world in public equities, private equities, real estate,
infrastructure and fixed income. Headquartered in Toronto, with offices in Hong Kong, London, Mumbai, New York
City, San Francisco, São
Paulo and Sydney, CPP Investments
is governed and managed independently of the Canada Pension Plan
and at arm's length from governments. At June 30, 2024, the Fund totalled C$646.8 billion. For more information, please
visit www.cppinvestments.com or follow us
on LinkedIn, Instagram or on
X @CPPInvestments.
SOURCE Canada Pension Plan Investment Board