OTPP Strengthens Interests in Chilean Water Utilities

The Ontario Teachers’ Pension Plan (OTPP) has increased its stakes in two Chilean water utilities by making a successful bid of C$541m ($567m).

Following the completion of the auction process held by Chilean Government agency CORFO, the OTPP boosted its stake in Essbio to 89.6% and its stake in Esval to 94.2%.

CORFO will retain a 5% stake in Essbio and Esval, enabling it to veto issues such as water rights transfers and utilities concessions.

Teachers’ Infrastructure Group senior vice-president Stephen Dowd said that the two water utilities have generated predictable returns over many years to help meet the plan’s pension obligations.