CPP Investments commits $532m to Iguá Saneamento, boosting growth after major Sergipe concession win
Canada Pension Plan Investment Board (CPP Investments) has announced a follow-on commitment of up to $532m to Iguá Saneamento, a Brazilian water and sanitation company.
This additional investment is set to support Iguá Saneamento's expected period of significant growth following the award of a major concession contract in the state of Sergipe.
Iguá secured the Sergipe concession on September 4th through a competitive auction. This will become Iguá's second-largest concession, providing water distribution, sewage collection, and treatment services to 74 municipalities in northeastern Brazil.
With this new concession, Iguá will operate in seven states, serving around 5 million customers.
James Bryce, global head of Infrastructure at CPP Investments, highlighted the significance of the investment, stating, “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.”
He noted that the sector offers substantial growth potential while allowing investments in long-term, stable assets.
Bryce expressed confidence that the investment in Iguá will generate strong returns for the CPP fund, adding that CPP Investments is looking forward to supporting Iguá through this follow-on commitment.
CPP Investments initially invested in Iguá in 2021, using the company as a platform to further its investments in Brazil’s water and sanitation sector. Prior to this latest commitment, CPP Investments held a 61.4 percent stake in Iguá.
