Singapore’s GIC to Invest 300 Million Reais in Equipav’s Aegea

GIC Pte, Singapore’s state fund, agreed to invest 300 million reais ($135 million) in a Brazilian water and sewage treatment company as it expands its presence in Latin America’s biggest economy.

GIC will subscribe to a capital increase in Aegea Saneamento e Participacoes SA, a unit of Grupo Equipav, to help the firm maintain its growth plans, the Brazilian company said in a statement dated yesterday. Aegea’s shareholders will be Equipav, GIC and International Financial Corp., the World Bank’s financing arm, after closing the transaction, according to the statement.

GIC’s investment in Aegea comes as the Latin American country is boosting infrastructure investments. Brazil’s national cities council, an advisory group created by the government, in June approved a 508.5 billion-real sanitation plan to provide clean water supplies to all urban areas of Brazil over the next 10 years.

“Aegea manages an attractive portfolio of water and sewage concessions in Brazil,” Tay Lim Hock, president of GIC Special Investments, said in the statement.

GIC, which manages more than $100 billion of Singapore’s reserves, is planning to open a Sao Paulo office next year after investing in Brazil, a person familiar with the matter said in June.

The Singapore investment firm teamed up with its affiliate Global Logistic Properties Ltd. and two other state funds in November to buy assets in Brazil for 2.9 billion reais.

Before it's here, it's on the Bloomberg Terminal.