Canada Pension Plan Investment Board (CPPIB) announced several days ago that it will acquire a 10.4% equity stake in Transportadora de Gas del Perú S.A. (TgP) from Graña y Montero, the largest engineering and construction company in Peru, for a consideration of US$200 million.
André Bourbonnais, Senior Vice-President, Private Investments, CPPIB, said:
"TgP fits well with our infrastructure portfolio and represents our first infrastructure investment in Peru. This transaction is in line with our strategy to invest in key sectors in Latin America. Our acquisition of a stake in TgP represents the cornerstone of a long-term partnership with Graña y Montero, as we continue to pursue infrastructure opportunities in select markets in Latin America."
TgP is the largest transporter of natural gas and natural gas liquids in Peru. In 2012, TgP delivered approximately 95% of both the country's total volume of natural gas and natural gas liquids extracted from Blocks 88 and 56 of the Camisea gas fields located in the Peruvian Amazon. TgP's customers include the largest power generators, natural gas distributors and industrial companies in Peru. In addition, one of its customers, Peru LNG, is the largest gas exporter in Peru and one of the largest gas exporters in Latin America.
In November 2013, Graña y Montero signed a memorandum of understanding with Canada Pension Plan Investment Board (CPPIB) for a long term partnership to invest in infrastructure in select markets in South America.
CPPIB is a professional investment management organization that invests the funds not needed by the Canada Pension Plan (CPP) to pay current benefits on behalf of 18 million Canadian contributors and beneficiaries. The CPP Fund totals C$192.8 billion.