Colombia secures Canadian partner for infra investments

Colombia’s Financiera de Desarrollo Nacional (FDN) and pension fund administrators have established a private capital fund to invest in Colombian infrastructure with a Canadian partner.

Caisse de dépôt et placement du Québec (CDPQ) will contribute $510m on top of $490m which FDN and pension fund administrators have injected into the fund, with a promise to invest in infrastructure projects for a total of $1bn.

 FDN President Clemente del Valle said: "With this private fund, capital will be invested in infrastructure, with the support of all Colombian pension fund administrators, who will be able to make long-term equity investments in projects and companies, hand-in-hand with a professional, highly reputable investor and global leader in infrastructure investment, CDPQ.”

 FDN subsidiary Infraestructura Asset Management Colombia will act as the administrator of the fund to deploy capital in projects across the energy, transportation, social infrastructure, telecommunications and water sectors.

 Each investment, split between the fund and CDPQ, will have a minimum value of $50m.

 FDN (20%), Colfondos, Old Mutual, Porvenir and Protección are the investors in the private capital fund, on top of the contribution coming from CDPQ.

 CDPQ President and CEO Michael Sabia said: “This partnership combines our partners' market knowledge with our expertise in infrastructure. We believe that together, we can find the best investment opportunities in a variety of sectors, generate returns for our respective pensioners and at the same time contribute to economic growth in Colombia.”