Canadian state pension fund increases tollroad holdings with Chile buy
By Peter Samuel
2012-04-22: The Canada Pension Plan Investment Board (CPPIB) is making another move into tollroads with a C1.14b (US$1.15b) buy of 49% of Chilean Grupo Costanera which has five tollroads with a length of 188km, 117 miles.
Four are all-electronic tollroads in the Santiago metro area, the fifth is a more rural tollroad on the central coast.
The Canada Pension Plan is a state retirement income scheme somewhat akin to US social security, except that it is fully funded and depends on investment income for its revenues. CPP has 18m contributors and pensioners.
The Investment Board has investments worldwide worth C$153b of which C$8.6b are in infrastructure like tollroads.
The Chilean purchase was from the Atlantia Group of Italy, the oldest and largest toll operator in that country.
CPPIB bought Macquarie's 25% share in 407ETR tollroad in the Toronto area a couple of years ago.