The Caisse de dépôt et placement du Québec is providing US$150 million in financing to a U.S. fibre optic network company.
Everstream Solutions operates a 43,000 kilometre fibre optic network and 63 data centres in the U.S. The capital, provided by the Caisse through its subsidiary CDPQ Revenu Fixe VIII Inc., will be used to increase the size of Everstream’s footprint in the Midwestern and Eastern regions of the U.S.
The financing is part of a strategy to capitalize on demand for 5G internet, which can only operate over fibre optic networks, in the U.S, according to a press release. “We are pleased, along with a group of lenders, to support Everstream’s strategy to expand in its target markets and densify its high-quality network to provide even more fibre services to U.S. businesses,” said Marc Cromier, executive vice-president and head of fixed income at the Caisse.
In other news the Ontario Municipal Employees’ Retirement System is acquiring a network of telecommunications tower.
In a US$950 million deal struck with TGP Telecom Ltd., the OMERS will acquire a network of 1,230 telecommunications towers located in major cities across Australia. Under the terms of the acquisition, TPG has entered into a 20-year contract to use assets and committed to building additional towers in the future.
The acquisition is part of the OMERS’ broader strategy to invest in infrastructure projects. In a press release, Christopher Curtain, senior managing director for the Asia-Pacific at OMERS Infrastructure, described the Australian — and east Asian — opportunities as a “priority.”
“Australia and Asia-Pacific more broadly are priority markets for OMERS Infrastructure, where we continue to see significant investment opportunities. . . . In the transaction, we see an excellent opportunity to realize our digital infrastructure thesis in the region. We look forward to working with the TPG team to first transition the business and then support its growth as it provides critical telecommunications infrastructure services to its customers.”