The Caisse de depot et placement du Québec (CDPQ) and the firm DP World announced on Monday an investment of US$5 billion ($6.3 billion) in strategic infrastructure in the United Arab Emirates.
The two partners will equally invest US$2.5 billion in three DP World assets worth a total of US$23 billion, namely the Port of Jebel Ali, the Jebel Ali Free Zone and the National Industrial Park.
The investment will be made through a new joint venture in which the Caisse de depot will hold a 22% stake, with the remainder of the transaction being financed by debt.
Having generated revenues of US$1.9 billion in 2021, the three fully consolidated strategic infrastructures within the DP World group have a solid track record of long-term growth.
According to Quebecers, the first tranche of the transaction should be concluded in the second or third quarter of 2022, and the closing of the second tranche should take place in the fourth quarter of 2022.
“We are pleased to strengthen our long-standing relationship with this leading logistics and supply chain operator, by investing in strategic business infrastructure that plays a crucial role in the global economy,” Emmanuel said in a statement. Jaclot, Senior Vice-President and Head of Infrastructure at the CDPQ.
“The co-investments of DP World and CDPQ have been very successful thanks to the complementarity of our expertise and our long-term investment horizon”, mentioned Sultan Ahmed Bin Sulayem, group president and chief management of DP World.