Canada Pension Plan Investment Board (CPPIB) has made its debut infrastructure investment in Indonesia with the acquisition of a 45% stake in the Cikopo-Palimanan (Cipali) toll road.
CPPIB is partnering PT Baskhara Utama Sedaya (BUS) to jointly acquire the 55% stake, in the concession holder and operator PT Lintas Marga Sedaya (LMS), currently held by PLUS Expressways International.
BUS is an existing owner of 45% of LMS and will increase its stake to 55%. CPPIB will acquire the remaining 45% stake in LMS for an undisclosed sum.
The 117km Cipali toll road is one of the longest operational toll roads in Indonesia and a critical link in the transportation network of the island of Java, as part of the Trans Java Toll Road network.
Scott Lawrence, managing director, head of infrastructure, CPPIB, said: 鈥淐ipali toll road provides CPPIB access to a vital infrastructure development supported by rising motorization rates in one of the most densely populated and economically productive regions in Indonesia.鈥�
Suyi Kim, senior managing director and head of Asia Pacific, CPPIB, said: 鈥淎s CPPIB鈥檚 first infrastructure investment in Indonesia, this deepens the fund鈥檚 commitment to the Asia-Pacific region as well as our focus on investments in new markets with attractive return and risk characteristics.鈥�
As at the first half of the year, CPPIB 鈥� which manages the C$400.6bn (鈧�272.8bn) funds of the Canada Pension Plan 鈥� had C$33.1bn invested in infrastructure assets globally.
