Canadian pension invests €500m in Isolux Infra

The concessions arm of Isolux Corsan has completed a €600m capital raise. The lion’s share came from Canada’s Public Sector Pension Investment Board, with the Spanish developer contributing €100m.

Canada’s Public Sector Pension Investment Board, a $58 billion pension fund, has invested €500 million in Isolux Infrastructure, the concessions arm of Spanish developer Isolux Corsan, the latter announced yesterday.

The investment was part of a capital raise, which also saw Isolux Infrastructure receive a €100 million equity injection from its developer parent, raising a total of €600 million. The fresh money “will boost Isolux Infrastructure’s capacity to expand,” Isolux Infrastructure said in a statement.

Madrid-based Isolux Corsan decided last summer to aggregate all its worldwide concessions activities into a new company – Isolux Infrastructure. The latter comprises a raft of projects requiring capital investments of circa €7.5 billion. Concessions had, in recent years, been growing the strongest among Isolux Corsan’s various business lines.

Isolux Infrastructure manages and operates infrastructure projects in three sectors:  toll road concessions, where it has over 1,600 kilometres (km) under concession in India, Brazil, Mexico and Spain; transmission and distribution lines, where it operates and manages over 5,500 km of power lines worldwide; and photovoltaic (PV) solar power, where it manages 286 megawatts across Italy, Spain, India, Peru and the USA. 

The Public Sector Pension Investment Board, also known as PSP Investissements, had recently paired with fund manager iCON Infrastructure to bid for the UK water assets of French group Veolia Environnement, although the team quit the sales process after the initial bids stage.

Canadian pensions have, of late, taken an interest in teaming up with Spanish developers. Last October, OPTrust, together with the Netherland’s PGGM, invested €400 million in a Globalvia subsidiary grouping 18 select rail and road concessions located in Spain, Portugal, Chile, Mexico, Costa Rica, Andorra and Ireland.