Samsung Sec to cooperate with Canada pension fund for infrastructure deals

  • 2019-09-06

Samsung Securities Co. Ltd. has signed a preliminary agreement with Canadian pension scheme La Caisse de dépôt et placement du Québec (CDPQ) to cooperate in exploring infrastructure investments.

With the memorandum of understanding inked on Sept. 3, Samsung will become the first South Korean brokerage firm to join forces with a foreign pension fund for infrastructure deals, Samsung said.

The preliminary agreement was made amid heated competition for infrastructure assets in developed countries as a result of ultra-low and negative interest rates.

Further, in the commercial property market in Europe, deep-pocketed local investment firms are stepping up effort to acquire office building, elbowing out Korean institutional investors, according to industry sources.

Samsung Securities is seeking to participate in a financing package for Heathrow Airport’s new runway project for which two other Korean brokerage firms has provided a combined $434 million debt.

In 2018, Samsung led a Korean brokerage consortium to buy a 39.24% stake in Dunkirk LNG terminal in France for around 850 billion won, which marked the single biggest investment by South Korean capital in an overseas infrastructure asset.

Earlier this year, Samsung and two other South Korean brokerage firms acquired a stake in Cross London Trains (XLT) for 210 million pounds.

CDPQ’s net assets amounted to 327 billion Canadian dollars as of end-June. It posted an average return of 6.1% on investments in the first six months of this year.

By Hogi Lee

hglee@hankyung.com

<Edited by Yeonhee Kim>