Exclusive: Canada's Caisse set to unveil big Mexico infrastructure fund- sources

Wed Oct 15, 2014 7:07am EDT
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By Allison Lampert and Christine Murray

MONTREAL/MEXICO CITY (Reuters) - Canada's second-largest pension fund, Caisse de depot et placement du Québec, is set to make a big foray into Mexico following an initial $100 million investment in real estate, according to two sources familiar with the matter.

The sources, who requested not to be named as the deal is not yet public, said the Quebec fund is poised to soon unveil a large infrastructure-related investment in the Latin American country.

One source said Caisse and a Mexican institutional investor plan to create a joint fund to invest up to several billion dollars in domestic infrastructure projects. A deal is likely to be finalized soon, the source said.

A Caisse spokesman declined to comment on the matter.

The planned infrastructure fund comes on the heels of a Mexico City investment last week by the Caisse's real estate arm Ivanhoé Cambridge.

The deals underscore the growing global ambitions of the Caisse, which had C$294.5 billion ($260.7 billion) in assets under management as of Dec. 31, 2013, and manages pension and insurance funds in the Canadian province of Québec.

It also comes as large projects promised by Mexico President Enrique Pena Nieto, who has spent his first two years in office passing numerous economic reforms, move closer to getting under way.

These projects include high-speed passenger rail from Mexico City to Queretaro, a new $9 billion airport in the capital and a $10 billion national broadband network. An impending spin-off of thousands of telecom towers owned by Carlos Slim's America Movil (AMXL.MX: Quote) could also present an investment opportunity.   Continued...

The Caisse de depot et placement du Quebec (CDP) building is seen in Montreal, February 26, 2014. REUTERS/Christinne Muschi