(570 News) Two of Canada’s biggest pension fund managers, CPPIB and OTPP, plan to spend a total of US$1.35b cash to buy nearly half of a new partnership with a Mexican company that develops and operates infrastructure businesses.

Two of Canada’s biggest pension fund managers plan to spend a total of $1.35 billion cash to buy nearly half of a new partnership with a Mexican company that develops and operates infrastructure businesses.

Canada Pension Plan Investment Board and the Ontario Teachers’ Pension Plan would own a combined 49 per cent of the partnership and the rest would be owned by Ideal, one of the largest infrastructure companies in Latin America.

Ideal’s contribution to the partnership is its 99 per cent equity interest in a company with the Arco Norte toll road, which passes by Mexico City and provides a link to major trade corridors.

The concession gives Autopista Arco Norte rights to the 223-kilometre toll road for the next 30 years.

CPPIB’s share of the new partnership would be 29 per cent and OTPP’s share would be 20 per cent, subject to approvals. They didn’t disclose how much cash each fund would pay for its share.

The pension fund managers said in a joint statement that the Arco Norte toll road fits a strategy of investments with stable cash flows to support retirement benefits.