Canada's biggest public pension fund, the US$341 billion Canada Pension Plan Investments (CPP), has delivered a non-binding offer to buy a stake in a Brazilian sanitation company as it continues to increase its investments in the country's utilities sector.
Igua Saneamento, which provides water and sewage services to 37 municipalities in Brazil, has not disclosed any further details of the deal. If the deal goes ahead, it will mark a broadening of CPP's infrastructure strategy in the South American country, which has so far focused on electricity generation.
CPP already has stakes in electricity company Equatorial Energía, hydro generation company Companhia Energética de São Paulo, and two electricity generating wind farms Ventos do Piauí I and Ventos do Araripe III. Its investments in Brazilian utilities infrastructure so far total approximately US$900 million, making it one of Brazil's biggest sovereign investors.