MONTREAL — Quebec's pension fund manager plans to invest $1.43 billion on infrastructure projects in Mexico after teaming up with a consortium of Mexican institutional investors.
The partnership plans to spend $2.8 billion over five years in what the Caisse de depot says is a first partnership in North America between Mexican financial institutions and a large international pension fund manager.
The Mexican government plans to spend $614.3 billion over four years on infrastructure investments, targeting energy and transportation projects.
The joint venture — called CKD Infraestructura Mexico, S.A. de C.V. — will focus on energy generation, including renewable energy, transmission and distribution, as well as transportation and public transit projects.
The Caisse will hold a 51 per cent stake in CKD Infraestructura, whose shares will be listed on the Mexican Stock Exchange. The Mexican partners, who manage 62 per cent of Mexican pension fund assets, will hold the remaining 49 per cent.
The Caisse, Canada's second-largest pension fund manager, has said that by 2018 it aims to double its infrastructure portfolio, currently valued at $11 billion.
The Canadian Press