By Muskan Arora
The C$646.8bn Canada Pension Plan Investment Board made a follow-up commitment of $391.6m to Iguá Saneamento, Brazilian water and sanitation company.
As per an announcement made on Tuesday, CPP first invested
in Iguá in 2021 to 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.
“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 follow-up commitment comes shortly after Iguá received
a contract on September 4 to provide water distribution and sewage collection
and treatment services to 74 municipalities across the northeastern Brazilian
state. In total the company will reach 5 million customers.
“This sector has significant room for growth while also
providing opportunities to invest in long-term, stable assets at scale,” added Bryce.
As per the
fund’s 2024 annual report, CPPIB’s Latin American investments returned
11.5%, primarily due to public equity investments in Brazil.
CPP commits approximately 8% of its portfolio to infrastructure.
Latin America makes up 6% of the fund’s geographic composition.
The fund’s infrastructure portfolio returned 2.6% in the FY 2024, majorly due to by strong returns in toll roads.
