The Singaporean state fund GIC Pte had entered into an agreement that an investment worth BRL300 million or USD135 million in a Brazilian utility firm. The investment would be in a water and sewage treatment comapany that would be the jump off point for the Singaporean firm into the biggest economy in Latin America.
GIC would be subscribing to a capital increase in a unit of Grupo Equipav, Aegea Saneamanto e Participacoes SA, in order to maintain the growth plans. This was confirmed through a statement from the Brazilian firm. The shareholders in Aegea would be Equipav, GIC and International Financial Corp, which is the financing arm of the World Bank after the closure of the transaction.
The investment of GIC in Aegea comes at the time when Brazil is expanding its infrastructure to entice foreign investments into the country. One of these plans was the creation of a BRL508.5 billion sanitation plan that would provide water supplies to the highly urbanizes areas of Brazil for the next decade or so.
According to GIC Special Investments President Tay Lim Hock, through a statement, "Aegea manages an attractive portfolio of water and sewage concessions in Brazil."
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