The Canadian pension fund CPP is closely monitoring investment opportunities in the sanitation and energy sectors in Brazil, aiming to maintain its strong presence as a major player in the infrastructure market in the country.
The executive took part as a panelist at the 26th Annual Conference of Santander in São Paulo on Tuesday, the 19th. Juan Pablo Zucchini from Advent and Maria Teresa Azevedo from Softbank also joined the panel to discuss global investments in Brazil.
He emphasized the growing trend of investing in key sectors in Brazil like infrastructure, sanitation, and energy during an interview with InvestNews. Szlejf mentioned that they have already invested four times in Auren and Yoguá, and are interested in further investments in other companies.
Sanitation refers to hygiene and cleanliness.
After IG4 left in August last year, control of Iguá shifted to CPP, with AIMCo owning 24% and BNDESPar owning 9.5% of Iguá.
The CPP was recently embroiled in a conflict leading to the CEO of the sanitation company resigning. Roberto Barbuti, recruited by the fund, was replaced by René Silva due to minority dissatisfaction, according to InvestNews. Szlejf, on the other hand, denies any conspiracy among partners.
The three major long-term shareholders are highly aligned and enthusiastic about the sanitation sector’s long-term potential as a relatively new and promising field under private initiative.
Shareholders are committed to conducting an IPO once market conditions are favorable to divest the BNDES investment. Engaging in discussions with a competitor, as Aegea has previously attempted, is a subject of speculation.
The Public Leadership Center’s technical note projected that the targets of the Sanitation Legal Framework will be reached by 2070, not by 2033 as mandated by the law. The CPP executive expressed contentment with the market opening instead of reliance on the public sector.
“I am confident in the advancements achieved in this transition through private efforts, including better service quality, expanded coverage, reduced losses, and improved management efficiency. As an investor and citizen, this progress is highly meaningful and exciting,” he stated.
