GIC invests $136m in Aegea of Brazil

GIC’s investment in Aegea Saneamento e Participações will enable the Brazilian water treatment company to pursue its growth plans.

Singapore’s sovereign wealth fund GIC has agreed to invest R$300 million (€100.2 million; $136.0 million) in Aegea Saneamento e Participações (Aegea), the water and sewage treatment arm of infrastructure company Grupo Equipav.

“The entrance of a partner of GIC’s stature is a sign of recognition of the work being done by Aegea and of the potential of the sector in Brazil,” José Carlos Toledo, president of Grupo Equipav’s board of directors, said in a statement.

The investment will strengthen the company’s capital structure as well as its position in seeking out growth opportunities in the water and sewage treatment sector, Aegea said. The company also noted in the statement that Grupo Equipav, one of its shareholders, will not sell shares in the transaction, reiterating its long-term commitment to the company and the sector.

“Aegea manages an attractive portfolio of water and sewage concessions in Brazil,” president of GIC Special Investments Tay Lim Hock said. “We are delighted to have Equipav and IFC as our partners and we look forward to working with the shareholders and management to help grow the company,” he added.

Aegea’s other shareholder, in addition to Grupo Equipav and GIC, is the International Finance Corporation, a member of the World Bank Group, which focuses on the private sector.

Founded in 1981, GIC’s objective is to manage Singapore’s foreign reserves. Since then, the fund has grown from managing a few billion dollars to more than $100 billion today. GIC invests in a range of asset classes, including equities, fixed income, real estate, private equity, and infrastructure. Headquartered in Singapore, it has investments in 40 countries.