SNC-Lavalin creates new infrastructure investment vehicle
By SNC-LavalinFinancing Infrastructure infrastructure investment vehicle SNC Lavalin
MONTREAL – SNC-Lavalin has launched a new infrastructure investment vehicle, SNC-Lavalin Infrastructure Partners LP (“the Partnership”), to efficiently redeploy capital back into development opportunities. This vehicle will hold SNC-Lavalin’s interests in a selection of its mature Canadian infrastructure assets and will allow the Company to monetize 80 per cent of these infrastructure interests while retaining a 20 per cent ownership, as well as the long-term management of these assets.
In addition, SNC-Lavalin has entered into a strategic agreement with a Canadian subsidiary of BBGI SICAV S.A. (LSE: BBGI) which will purchase 80 per cent of the limited partnership units in the Partnership for approximately C$208 million for the initial five transferred assets, while a subsidiary of SNC-Lavalin will hold the remaining 20 per cent.
“This is an important milestone for SNC-Lavalin Capital,” said Chantal Sorel, managing director, SNC-Lavalin Capital. “This new venture demonstrates SNC-Lavalin’s full life-cycle expertise and ability to create significant value with our long-term strategic customer focus. It reflects our active approach to managing our asset portfolio in a way that optimizes shareholder returns in keeping with the company’s strategic objectives. In addition, it sets the foundations to create new project financing vehicles that will support the development of our robust pipeline of projects.”
The Partnership will initially hold a portfolio comprised of SNC-Lavalin’s interests in the following five assets: the William R. Bennett Bridge (Kelowna, BC), the Canada Line (Vancouver, BC), the Southeast Stoney Trail (Calgary, AB), the Restigouche Hospital Centre (Campbellton, NB) and the MUHC Glen site (Montreal, QC).
SNC-Lavalin will act as the General Partner and as the Manager of the Partnership, and as such, it will continue to be the counterparty to the various stakeholders and partners in the transferred assets.