CPP Investments Boosts Support for Iguá Saneamento's Growth

CPP Investments Expands Commitment to Iguá Saneamento

CPP Investments recently announced a boost to its investment in Iguá Saneamento, a major player in the Brazilian water and sanitation sector. This latest commitment of up to R$2.2 billion (approximately C$532 million) follows Iguá's successful win in a concession auction for water and sanitation services in the state of Sergipe, marking a significant milestone for the firm.

Growth Strategy and Market Impact

The newly acquired concession rights are expected to amplify Iguá's customer base and extend its geographic reach significantly. This venture not only positions Iguá to improve service delivery across several municipalities but also enhances its operational footprint across Brazil.

Financing Iguá Saneamento's Future

This equity injection from CPP Investments is anticipated to facilitate Iguá's purchase obligations and bolster its capital expenditures. The investment signifies CPP Investments' confidence in Iguá's potential for transformational growth and aligns with their strategy to commit to profitable infrastructure assets.

Concession Win and Services Expansion

Iguá emerged victorious in the competitive auction process, securing rights to provide water distribution and sewage collection services to 74 municipalities in Sergipe. With the addition of this concession, Iguá will have operational capacities across seven Brazilian states, thereby serving around 5 million customers.

A Transformational Partnership

James Bryce, the Global Head of Infrastructure at CPP Investments, remarked on the importance of this acquisition, noting that it provides a crucial platform for identifying lucrative investment opportunities within Brazil's growing water and sanitation market. The partnership emphasizes a commitment to investing in long-term, stable infrastructure that benefits both investors and the communities served.

Previous Investments and Market Position

CPP Investments initially ventured into Iguá's operations back in 2021, targeting Brazil's water and sanitation issues as a long-term investment strategy. Prior to this latest infusion of capital, CPP maintained a significant stake in Iguá Saneamento, showcasing their belief in the company's mission and market potential.

About CPP Investments

Canada Pension Plan Investment Board (CPP Investments) serves the interests of over 22 million contributors and beneficiaries of the Canada Pension Plan. The organization is dedicated to creating diversified portfolios of assets globally, spanning public equities, private equities, real estate, infrastructure, and fixed income assets. Headquartered in Toronto, with a wide-reaching presence in major cities worldwide, CPP Investments operates independently of the Canada Pension Plan, ensuring robust governance and management practices.

Frequently Asked Questions

What is the significance of CPP Investments' new commitment?

This commitment significantly strengthens Iguá Saneamento's capacity to expand its services and improve water and sanitation infrastructure in Brazil.

How will this investment impact Iguá's operations?

The investment is expected to enhance Iguá's customer base and support extensive capital expenditures for ongoing improvements and growth.

Where will Iguá provide services with the new concession?

Iguá will serve 74 municipalities across the northeastern Brazilian state of Sergipe, significantly enhancing its operational footprint.

What was Iguá's previous involvement with CPP Investments?

CPP Investments first invested in Iguá Saneamento in 2021, establishing a foundation for continued investment in Brazil's water and sanitation sector.

How does CPP Investments manage its operations?

CPP Investments is managed independently and aims to develop diversified portfolios that promote long-term sustainability and growth for its investments.

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