The Public Sector Pension Investment Board is creating a new long-term strategic partnership with BCE Inc.
The new partnership, named Network FiberCo, will accelerate the development of fibre infrastructure in underserved U.S. markets through telecommunications firm Ziply Fiber. PSP Investments is allocating a potential commitment of more than US$1.5 billion. The business partnership is expected to improve free cash flow generation at Bell and support earnings before interest, taxes, depreciation and amortization accretion over the long term.
“This commitment by PSP Investments will generate inflation linked and downside protected returns, which will contribute to fulfilling our mission to support the retirement of people who protect and serve Canada,” said Deborah Orida, president and chief executive officer at PSP Investments, in a press release.
In other news, the Caisse de dépôt et placement du Québec is leading a new $160 million investment round for Germain Hotels. The new investment will accelerate the company’s development in Canada and consolidate a network of properties.
In a press release, Kim Thomassin, executive vice-president and head of Quebec at the Caisse, said the investment organization has supported the hotel firm at three key moments of its expansion across Canada.
“By leading this new round of financing, we continue to stimulate the growth of a Quebec company with a distinctive business model. Our aim is to sustain Germain Hotels’ success over the long term and reinforce its leadership in the Canadian hotel market.”
The Caisse is also closing a $903 million credit facility for energy-as-a-service provider Redaptive. The funds are being provided alongside investment manager firm Nuveen. The investment will allow Redaptive to support its enterprise customers, according to a press release.