Canada Pension Plan Investment Board (CPP Investments) 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.
