CPP Investment Board

CPP Investment Board

April 19, 2012 12:33 ET

Canada Pension Plan Investment Board Enters Into Agreement to Acquire 49.99% Interest in Grupo Costanera

Significant positions in five major urban toll roads in Chile

TORONTO, ONTARIO--(Marketwire - April 19, 2012) - The Canada Pension Plan Investment Board (CPPIB) announced today that it has entered into an agreement to acquire significant minority stakes in five major Chilean toll roads from the Atlantia Group. The agreement involves CPPIB acquiring a 49.99% interest in Grupo Costanera. CPPIB will commit an equity investment of 560 billion Chilean pesos or approximately C$1.14 billion for this transaction.

André Bourbonnais, Senior Vice-President, Private Investments for CPPIB, said: "The addition of these five major urban toll roads in Chile is an excellent opportunity to expand our infrastructure portfolio in a developing market. Chile's strong economic growth prospects and its stable legal and regulatory framework make it an attractive country for investors like CPPIB. As a long-term investor, we seek infrastructure assets that will deliver stable returns over a prolonged period. We look forward to partnering with Atlantia, one of the world's leading toll road operators."

"With a long-term investment horizon, and the internal expertise to deploy capital in complicated transactions, CPPIB is one of only a few global institutional investors that is able to complete a transaction of this size and complexity," said Mr. Bourbonnais.

Grupo Costanera is the largest urban toll road operator in Chile and owns a portfolio of five toll roads that span a 188-kilometre network. Four of the toll roads are located in the Santiago metropolitan region including two major commuter motorways, Costanera Norte and Vespucio Sur. The fifth toll road is located on the central coast of Chile.

Atlantia Group will continue to own the remaining 50.01% interest in Grupo Costanera.

The transaction is subject to customary regulatory approvals.

At December 31, 2011, CPPIB's infrastructure portfolio totaled C$8.6 billion representing 5.6% of the CPP Fund. In February 2012, CPPIB completed the C$3.18 billion acquisition of a 24.1% stake in the Gassled Joint Venture alongside its consortium partners Allianz Capital Partners, a subsidiary of Allianz SE, and Infinity Investments SA, a wholly-owned subsidiary of the Abu Dhabi Investment Authority. The Gassled Joint Venture owns the majority of the gas transport infrastructure on the Norwegian Continental Shelf.

About Canada Pension Plan Investment Board

Canada Pension Plan Investment Board (CPPIB) is a professional investment management organization that invests the funds not needed by the Canada Pension Plan to pay current benefits on behalf of 18 million Canadian contributors and beneficiaries. In order to build a diversified portfolio of CPP assets, CPPIB invests in public equities, private equities, real estate, inflation-linked bonds, infrastructure and fixed income instruments. Headquartered in Toronto, with offices in London and Hong Kong, CPPIB is governed and managed independently of the Canada Pension Plan and at arm's length from governments. At December 31, 2011, the CPP Fund totalled $152.8 billion. For more information, please visit www.cppib.ca.

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